FX.co ★ Japanese Shares Rally on Trade Optimism

On Friday, the Nikkei 225 Index increased by 1.03% to close at 34,730, while the broader Topix Index advanced 1.14% to 2,559. This continued the positive momentum from the previous session, fueled by optimism that the ongoing trade discussions between the US and Japan may result in reduced tariffs. Earlier in the week, Japan's Economy Minister, Ryosei Akazawa, confirmed that President Trump had prioritized securing a deal with Japan. Economically, recent figures indicated that Japan's overall inflation dropped to a four-month low of 3.6% in March, though core inflation rose as projected to 3.2%. Looking forward, all eyes are on the upcoming Bank of Japan policy meeting, where expectations are high that the central bank will maintain interest rates at 0.5%. However, it may potentially adjust its growth forecasts downward due to the potential impact of tariffs. In corporate developments, Chugai Pharmaceuticals experienced a significant surge of 17.5% after its weight-loss drug, co-developed with Eli Lilly, demonstrated comparable results to Ozempic.