U.S. stock gains are transmitting to Japan's stock market, with the Nikkei 225 index closing at a record high

Odaily News The Nikkei 225 index rose on Friday, extending this week's gains. Weaker U.S. producer price data eased concerns about a near-term Federal Reserve rate hike and boosted risk appetite. The Nikkei 225 rose 0.59% to close at 68,713.80 points, up 4.7% for the week. The broader Topix index rose 0.51% to close at 4,197.20 points, marking a record closing high. U.S. stocks rose overnight after data showed U.S. July PPI was flat month-on-month, further reinforcing market expectations that the Fed will hold interest rates steady next month. Both the S&P 500 and the Nasdaq Composite hit record closing highs.

Nomura Securities equity strategist Wataru Akiyama said: "Currently, we can see that the rise in U.S. stock prices is transmitting to the Japanese market. Falling crude oil prices, as well as weakened market expectations of an early U.S. rate hike due to cooling inflation, are also positive factors for Japanese stocks." Among Nikkei 225 constituents, the biggest gainer was Nexon, a company associated with Nintendo, rising 19.85%, its largest single-day gain since February 2024; followed by IT firm Shift, up 7.57%; and Nintendo rose 6.91%. (Jin Shi)