Nikkei 225 Extends Rally as US-China Trade Tensions Ease

The Nikkei 225 closed sharply higher on Friday, marking a continued winning streak as the index climbed 666.64 points, or 1.90%, to finish at 35,705.74. The index traded within a range of 35,337.98 to 35,835.28 during the session, signaling strong bullish momentum heading into the new week. The rally was fueled by a positive lead from Wall Street and easing geopolitical friction. Market participants reacted favorably to reports that China may have exempted certain U.S. imports from 125% tariffs, while President Donald Trump countered claims that trade negotiations had stalled. This shift in sentiment provided a tailwind for global risk assets. Broad-based gains were evident across key Japanese sectors. In the automotive space, Mazda Motor led with a 2.80% increase, followed by Nissan (+1.61%) and Toyota (+1.22%). Technology and industrial giants also saw significant jumps, with Hitachi surging 5.26% and Mitsubishi Electric rising 3.89%. Financials provided steady support, with Mizuho and Sumitomo Mitsui Financial both posting gains above 1%. The positive momentum in Tokyo mirrors a broader recovery in global equities. In the U.S., the NASDAQ rallied 1.26% to 17,382.94, while the S&P 500 and Dow Jones Industrial Average also closed in the green. This synchronized movement suggests a recovery in investor confidence as trade uncertainties diminish.