The Japanese Topix Index rose to the highest level in 8 months today, Friday, as bank shares have made gains after inflation data that exceeded the expected, but lost most of its gains upon closing due to concerns about the impact of American customs duties.
The broader Topics rose 0.29% to 2804.16 points, the highest closed level since last July 23, and has increased to the seventh consecutive session in the longest series of gains since January 2024.
The Nikki index won the gains earlier to close 0.2% at 37677.06 points. The index rose 1.89% during the week.
“Investors have sold some stocks to see whether the American market will witness a recovery. They will be concerned about US President Donald Trump’s policy about customs duties next week as well,” said Daewwa Securities Analyst Young Tsuboy.
The basic inflation rate in Japan was 3% in February, with an index excluding fuel at the fastest frequency of a year. This indicates the widening price pressures, which enhances market expectations to raise interest rates again.
This data comes in the wake of a warning from the Governor of the Bank of Japan, Kazo Uida, issued after the central bank decided to keep interest rates unchanged on Wednesday, stressing that the high food costs and wages growth that exceeded expectations may push the basic inflation to rise.
The banking sector index jumped 4.14%, becoming the largest winners among the 33 sub -indicators on the Tokyo Stock Exchange.
The shares of Mitsubishi UFG’s Financial Group rose 5.72%
The Mizoho Financial Group shares rose 3.09%.
Advannett, a 2.23%chip testing equipment, has decreased significantly to the decrease in the Nikki index.
Sumco, a silicon chips, lost 6.13%, becoming the largest loser in terms of percentage on the Nikki index.
