FX.co ★ Japanese Shares Reverse Early Losses

The Nikkei 225 Index rose 0.7% to above 69,000 on Friday, rebounding from earlier losses after weaker-than-expected US employment data prompted investors to scale back expectations for additional Federal Reserve interest rate hikes this year. The softer labor report partially offset ongoing worries over the AI sector, where market participants remain unsure whether heavy capital spending and intensifying competition can justify elevated valuations and support durable earnings growth.

At the same time, the yen’s nearly 1% surge on Thursday—driven by speculation that Japanese authorities could step in to support the currency at any moment—continued to weigh on domestic equities. Among notable movers, Kioxia Holdings advanced 7.3%, while Kokusai Electric gained 6.5%, Fast Retailing added 4.3%, Sony Group climbed 2.3%, and Toyota Motor rose 1.1%.