FX.co ★ Japanese Stocks Rise on Renewed Trade Optimism

The Nikkei 225 Index advanced by 0.4% to exceed 37,600, while the more expansive Topix Index also climbed 0.4% to reach 2,767 on Friday. This uptick reversed losses from the prior session, spurred by a recent phone conversation between U.S. President Donald Trump and Chinese President Xi Jinping, which bolstered market morale. The leaders discussed resuming trade negotiations to potentially conclude the ongoing trade conflict. In Japan, recent data revealed an unexpected decline in household spending for April, highlighting the effect of rising prices on consumer demand. These softer spending figures contribute to the array of factors the Bank of Japan must consider as it deliberates on the timing of future interest rate increases. Among the session's top achievers were Advantest with a 1.6% gain, Mitsubishi Heavy Industries up by 1.4%, Fujikura increasing by 1.2%, Nintendo advancing 2.5%, and Tokyo Electron with a rise of 1.0%. Despite the gains on Friday, both major indices are still poised for a weekly decline.