FX.co ★ Japanese Shares Rally on GDP Surprise

The Nikkei 225 Index surged 1.71% to reach 43,378, while the broader Topix Index climbed 1.63% to 3,108 on Friday, bouncing back from the previous session’s downturn as encouraging GDP figures buoyed market confidence. Japan's economy grew by 0.3% in the second quarter, picking up speed from a 0.1% increase in the first quarter, which aligned with consensus forecasts. This positive surprise was largely driven by net exports, which contributed 0.3 percentage points to overall growth, despite challenges posed by US tariffs. On the global front, an unexpectedly strong US producer price inflation report dampened expectations for an aggressive half-point cut by the Federal Reserve in the upcoming month. Among the top performers were Lasertec, soaring 8.3%, Mitsubishi UFJ, rising 6%, SoftBank Group, up 6.4%, Sumitomo Mitsui, gaining 4.6%, and Tokyo Electric, advancing 1.2%. Over the week, the Nikkei and Topix indices advanced by 3.73% and 2.76%, respectively.