FX.co ★ Japanese Shares Rise on GDP Surprise

On Friday, the Nikkei 225 Index rose by 0.5% to surpass 42,800, while the more comprehensive Topix Index increased by 0.75% to reach 3,080. This recovery followed the losses from the previous session, buoyed by stronger-than-anticipated GDP figures that boosted market sentiment. Japan's economy grew by 0.3% during the second quarter, picking up pace from the 0.1% expansion recorded in the first quarter—a figure that aligned with general forecasts. The unexpected uptick in growth was chiefly propelled by net exports, contributing an additional 0.3 percentage points to the expansion despite the challenges posed by US tariffs. Internationally, a US producer price inflation report that exceeded expectations led to reduced speculation regarding a potential substantial half-point interest rate cut by the Federal Reserve in the upcoming month. Notably, Lasertec saw a 4.4% increase in its stock price, Mitsubishi UFJ surged by 5%, SoftBank Group grew by 1.3%, Sumitomo Mitsui advanced by 3.7%, and Tokyo Electric saw a gain of 1.3%.