Nikkei Extends Rally with Earnings Boost

The Nikkei 225 rose 0.8%, securing a 1.7% weekly gain, as stock-specific earnings drove gains despite election uncertainty
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The Nikkei 225 ended the week on a strong note, rising 0.8% on Friday and finishing the week up 1.7%. Earnings reports remained the primary driver of market movements as Japan’s reporting season picked up pace. Despite ongoing election uncertainty, traders selectively rewarded companies that delivered strong earnings or strategic clarity.

Polls point to a potential win for Prime Minister Sanae Takaichi’s ruling coalition, which markets interpret as supportive of fiscal expansion. However, political uncertainty kept traders cautious, with limited risk-taking and a preference for short-term trades around earnings.

Read more about the Nikkei’s technical outlook, election impacts, and earnings momentum shaping Japan’s equity market in this article

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