Nikkei 225 Surges 1.04% on Trade Optimism, Seven-Day Winning Streak

The Nikkei 225 index experienced a significant surge, marking its longest consecutive rise of the year. This upward trajectory was driven by optimistic sentiment surrounding ongoing trade negotiations, which have bolstered investor confidence. The index closed at 36,830.69 points, achieving a 1.04% increase and extending its winning streak to seven consecutive trading days, the longest since August 2023.

Throughout the week, the index recorded a 2% gain, marking its third consecutive week of increases. This positive momentum was further supported by the weakening of the Japanese yen, which enhanced the appeal of Japanese stocks. The yen's depreciation followed the Bank of Japan's decision to maintain its interest rates unchanged, despite lowering its economic growth forecast due to U.S. tariffs.

Investors are optimistic about the progress in trade negotiations between Japan and the United States. The highest economic negotiator from Japan, Akio Akazawa, held talks with U.S. representatives and expressed his intention to hold a third round of negotiations later this month. This development has been seen as a positive signal, contributing to the market's bullish sentiment.

Despite the positive outlook, the index's gains were somewhat limited by the upcoming four-day weekend in Japan and the anticipated release of U.S. non-farm payroll data later in the day. The Nikkei 225 index has fully recovered from the losses incurred following U.S. President Donald Trump's announcement of tariff measures in April.

Several key stocks contributed to the index's rise. Fast Retailing, the parent company of the Uniqlo brand, saw its stock price increase by 1.98%, making it one of the top performers. Additionally, Daifuku, a logistics and packaging company, experienced a 5% surge in its stock price after announcing strong annual operating profit expectations, making it the best-performing stock in the index.

The prolonged period of gains for the Nikkei 225 index highlights the market's ability to capitalize on favorable developments and its resilience in the face of economic uncertainties. As trade negotiations continue to progress, the index is expected to maintain its upward momentum, provided there are no unexpected setbacks. The positive sentiment surrounding trade talks has instilled confidence among investors, leading to increased buying activity and pushing the index to new heights.