FX.co ★ Japanese Stocks Climb as Rate Hike Expectations Ease

The Nikkei 225 Index rose by 1% to approximately 36,800, while the broader Topix Index increased by 0.5% to 2,693 on Friday. This surge represents a one-month high for Japanese stocks as investors adjusted their expectations regarding further interest rate increases from the Bank of Japan for the current year. Both benchmark indexes are poised for their third consecutive weekly gain, having recouped all losses prompted by US President Donald Trump's announcement on April 2 concerning comprehensive reciprocal tariffs. On Thursday, the Bank of Japan maintained its policy rate at 0.5% and revised its growth and inflation projections downward, indicating a reduced probability of near-term rate hikes. Leading the pack in gains were companies such as Tokyo Electron, up 1.7%, Mitsubishi Heavy Industries, with a 1% rise, Toyota Motor climbing 1.6%, Nintendo up by 0.8%, and Sony Group with a 0.7% increase.