Japanese shares experienced a strong rally on Friday, reversing a two-day losing streak, as anxieties surrounding trade relations with China diminished. Positive domestic economic data, particularly an unexpected increase in household spending, also contributed to the upbeat market sentiment. Several major companies saw significant gains, further boosting the index.
- The Nikkei 225 Index jumped 1.61% to close at 51,940.
- Sentiment improved after China indicated export controls on dual-use items to Japan would not affect civilian use.
- Japanese household spending unexpectedly increased in November.
- Fast Retailing surged more than 10% after raising its full-year earnings forecast.
- Other notable gainers included Tokyo Electron (+3.5%), Mitsubishi UFJ (+1.5%) and Toyota Motor (+2.9%).
- Japanese markets will be closed on Monday for a holiday.
The overall picture suggests a positive short-term outlook for the Nikkei. Easing trade tensions and encouraging domestic spending figures have bolstered investor confidence. Strong performance from key companies, particularly in the retail sector, further supports this upward trend. However, with markets closed for a holiday, this momentum will face a pause before potentially continuing next week.