Tokyo stocks rose Friday, with the Nikkei stock index posting a five-trading-day winning streak, buoyed by dividend-driven buying, while continued gains in artificial intelligence- and semiconductor-related shares led the market higher amid a lack of fresh trading cues. The 225-issue Nikkei Stock Average ended up 850.21 points, or 1.30 percent, from Thursday at 66,364.20. The broader Topix index finished 53.29 points, or 1.31 percent, higher at 4,128.59. On the top-tier Prime Market, the main gainers were bank, securities house and electric appliance issues.
The U.S. dollar briefly weakened below the 158 yen line in Tokyo, after remarks by Japanese Finance Minister Satsuki Katayama that U.S. President Donald Trump expressed concern about the weakening yen during a meeting with Japanese Prime Minister Sanae Takaichi on Tuesday in New York. At 5 p.m., the dollar fetched 158.09-11 yen compared with 158.82-92 yen in New York and 158.20-23 yen in Tokyo at 5 p.m. Thursday. The euro was quoted at $1.1389-1391 and 180.06-10 yen against $1.1375-1385 and 180.66-76 yen in New York and $1.1393-1395 and 180.26-30 yen in Tokyo late Thursday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 3.075 percent, unchanged from Thursday’s close, after rising to 3.115 percent at one stage, its highest level since August 1996, in line with rises in U.S. bond yields on expectations of more rate hikes by the Federal Reserve. Buying spread across a broad range of sectors after indexes on Wall Street ended mixed, as investors sought to secure rights ahead of Monday’s final day to qualify for dividends, dealers said. AI- and chip-related shares led the gains, following upbeat news and gains in the U.S. market during Japan’s five-day holidays through Wednesday. Rising Japanese bond yields also supported financial sectors.
The yen’s strength during the trading session “has not been viewed as a negative factor (for the stock market), while the rise in the West Texas Intermediate crude oil futures has also subsided,” said Maki Sawada. Meanwhile, SoftBank Group weighed on the Nikkei stock index following a report that Oracle Corp. had issued a “force majeure” notice to the developer of a data center project, a key part of the Stargate initiative in which SoftBank Group Corp. is a participant.
