Nikkei Extends Gains as Yen Weakens and U.S.-China Trade Tensions Ease

The Nikkei 225 index climbed for the third consecutive session on Friday, April 25, 2025, supported by a weakening yen and signs of easing trade tensions between the United States and China, which bolstered investor appetite for technology and export-oriented stocks.

The Nikkei closed up 1.9% at 37,705.74 points, recovering almost all the losses incurred since the U.S. President Donald Trump announced new tariffs on April 2. Meanwhile, the broader Topix index rose 1.37% to 2,628.03 points, posting a weekly gain of 1.3%

The rally followed comments from Trump indicating a willingness to ease tariffs on China, alleviating fears of a deepening trade war. Additionally, currency talks between Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent helped calm concerns over a strengthening yen, with both sides agreeing to maintain a "constructive dialogue" without setting explicit currency targets

On the corporate front, Nidec shares surged 12.48% after the electric motor manufacturer reported stronger-than-expected quarterly earnings and forecasted record full-year operating profits. Fujitsu shares also gained 4.8% following forecasts of a 77% jump in net profit for the fiscal year ending March 2026

Chip-related stocks, including Tokyo Electron and Advantest, rose 4.24% and 4.64% respectively, providing significant support to the Nikkei

These gains highlight the resilience of Japanese markets amid global uncertainties, with investor focus remaining on corporate earnings results and evolving trade and monetary policy developments.