Japan Indexes Advance 1% After a Week of Turbulent Trading

Akira Ito
14 Mar, 2025
Tokyo

Stock market indexes in Tokyo rebounded in Friday's trading as bargain hunters returned despite escalating global trade tensions. 

The Nikkei 225 stock average gained 0.9% and extended the weekly rise to 1.0%; the TOPIX advanced 0.9% and extended the weekly gain to 0.95%. 

Despite the market rebound, sentiment remained fragile as investors feared a new round of U.S. tariffs could target Japan's exports.

The Trump administration announced 200% tariffs on alcoholic beverages from the European Union after the region of 27 nations retaliated with its own tariffs of 50% on U.S. whiskey. 

The it-for-tat tariffs could spiral out of control and drag down global goods trade, shrink global economic growth, and reorder supply chains away from the U.S. 

Closer to home, investors reviewed the latest comments from Bank of Japan Governor Kazuo Ueda targeting the need to shrink the central bank's balance sheet. 

The Bank of Japan is likely to announce its rate hike decision at the end of two-day policy meeting on March 19, amid rising wages and inflation above 2%. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.9% to 37,095.73 and TOPIX gained 0.8% to 2,718.86. 

Advantest Corp. gained 5.3% to ¥8,245.0, Keyence Corp. advanced 2.2% to ¥61,400.0, Disco Corp. increased 3.7% to ¥35,700.0. 

Seven & Holdings Co. Ltd. decreased 1.8% to ¥2,168.0, and the Canada-based Couche Tard ramped up its campaign to convince shareholders to accept its hostile deal. 

Defense related stocks advanced for the second week in a row amid expectations that Japanese government will ramp up its arms purchases. 

Kawasaki Heavy Industries jumped 3.3% to ¥9,166.0, IHI Corp. gained 1.6% to ¥10,775.0, and Mitsubishi Heavy Industries increased 2.5% to ¥2,556.0.