FX.co ★ Nikkei 2225 Pares Early Gains, Logs Second Straight Weekly Rise

The Nikkei 225 index advanced by 267 points, or 0.5%, concluding at 50,675 on Friday after three subdued sessions, achieving a second consecutive weekly gain of 0.7%. This uptick was largely attributed to the strength in several major blue-chip companies. Concurrently, Japan's broader Topix index briefly reached a record high before moderating. Investor confidence was bolstered by the cabinet's approval of a record budget for the fiscal year 2026. This budget aims to balance proactive fiscal measures with long-term debt management strategies and is expected to be presented to the Diet in January. Additionally, markets responded to reports that Tokyo may reduce the issuance of super-long government bonds next year, which led to a retreat in benchmark government bond yields from a 26-year peak. However, early gains were pared back due to a greater-than-anticipated decline in Japan's industrial output, slowing retail sales growth, and a stagnant unemployment rate remaining at its highest since July 2024. In the equity market, gains were noted in SoftBank Group (1.8%), Fast Retailing (1.9%), Advantest (2.4%), and Nintendo (2.1%), while Sumitomo Electric and Tokyo Electric Power saw declines of 4.7% and 2.4%, respectively.