Japan's Nikkei 225 Extended Weekly Advance and Erased Tariff-Driven Slump In April

Akira Ito
02 May, 2025
Tokyo

Japan's benchmark indexes in Tokyo traded higher and extended gains for the third week in a row, as investors focused on the latest rate decisions.

The Nikkei 225 Stock Average gained 0.7%, and the broader Topix advanced 0.2% amid a growing belief that the Bank of Japan may pause rate hikes for a while. 

The central bank held steady its short-term rates at 0.5% and lowered its estimates of annual economic growth and inflation, citing elevated global trade uncertainties.

The yen weakened to 145.21 against the U.S. dollar as currency traders speculated that interest rates are likely to stay unrevised for the next two policy meetings. 

The Nikkei 225 Stock Average and the CSI 300 index extended gains for the third consecutive week and erased most of the losses of the first week in April after China signaled its willingness to engage in trade talks with the U.S. 

Chinese officials confirmed that the U.S. has reached out through "several relevant channels" to start trade negotiations, raising hopes of a possible easing of tensions. 

 

Japan's Jobless and Labor Force Participation Rates Expanded in March. 

On the economic front, Japan's jobless rate edged up to 2.5% in March from 2.4% in the previous month, the Ministry of Internal Affairs & Communications said Friday. 

The number of unemployed increased by 50,000 to 1.73 million, while the number of employed declined by 80,000 to 68.1 million.

The labor force, which includes employed and job seekers, shrank by 50,000 to 69.81 million, and those detached from the labor force rose by 30,000 to 39.94 million.

The labor force participation rate, not adjusted for seasonal factors, rose to 63.3% in March from 62.8% a year ago.

The critically watched jobs-to-applications ratio expanded to 1.26 from 1.24, a five-month low in February.

 

Japan Indexes and Stocks

The Nikkei 225 Stock Average jumped 0.7% to 36,705.53, and the broader Topix index gained 0.2% to 2,683.61.  

Automobile manufacturers led gainers in Friday's trading amid hopes of improving trade tensions between the U.S. and Japan. 

Toyota Motor Corp. gained 1.3% to ¥2,785.50, Honda Motor Corp. jumped 1.3% to ¥1,484.0, and Nissan Motor edged down 0.2% to ¥344.70. 

Retailers traded higher amid a growing speculation that small- and mid-sized companies will increase wages at a faster rate than inflation.

Fast Retailing Co. increased 1.2% to ¥47,600.0, Isetan Mitsukoshi Holdings decreased 0.3% to ¥1,851.50, and Takashimaya Company declined 1.5% to ¥1,096.50.

Seven & I Holdings rose 2.3% to ¥2,206.50 after the company signed a non-disclosure agreement with Canada-based Alimentation Couche-Tard Inc. 

The Canada-based retailer has proposed to acquire the parent company of 7-Eleven and Speedway for $47 billion, which operates 85,000 7-Elevens in 19 countries.