Japan’s Topix index closed at a record high on Thursday after worries about the impact of U.S. tariffs eased, and increased investor optimism about strong performance of domestic firms.
The broader Topix rose 0.72% to 2,987.92. The Nikkei climbed 0.65% to 41,059.15.
Both indexes rose for a third consecutive session.
The three-day rally eclipsed a sharp decline on Monday, when the Nikkei posted its largest drop in two months.
“The market was too bearish, with concerns about the U.S. tariff impact on domestic firms. But that sentiment was reversed,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
“And the weak economic data in the U.S. raised expectations for the Federal Reserve’s rate cut, which supported sentiment of both U.S. and Japanese equities,” said Suzuki.
Sony Group jumped 4% to provide the biggest boost to the Topix, after the game and camera maker raised its full-year operating profit forecast by 4%.
The Topix index held its momentum even as heavyweight Toyota Motor slipped 1.5% after the automaker cut its full-year operating profit forecast by 16%.
Shares of Mitsubishi UFJ Financial Group rose 1.85% and Sumitomo Mitsui Financial Group gained 1.35%.
M3’s shares surged 22% after Goldman Sachs raised the target price for the medical services platform operator to 2,300 yen from 2,250 yen.
Cosmetic maker Shiseido jumped 11%.
Chip-making equipment maker Tokyo Electron fell for a third day, falling 2.46% on Thursday to weigh on the Nikkei the most.
Chip-testing equipment maker Advantest reversed early losses to end 0.3% higher.
This article was generated from an automated news agency feed without modifications to text.
