The Nikkei 225 Index rose 0.1% to around 39,690 while the broader Topix Index gained 0.35 to 2,820 on Friday, recouping losses from the previous session and tracking Wall Street higher, where the S&P 500 and Nasdaq Composite closed at new record highs.
Investors, however, remained cautious amid growing tensions in US-Japan trade relations.
US President Donald Trump announced a 25% tariff on Japanese goods, set to take effect on August 1.
In response, Japanese Prime Minister Shigeru Ishiba emphasized the need to reduce the country’s reliance on the US in critical sectors such as defense, food, and energy.
He described the ongoing tariff negotiations as a “battle in which national interest is at stake.” Technology stocks led Friday’s advance, with solid gains from Advantest (+1.7%), Lasertec (+1.9%), and Disco (+0.9%).