Key facts
- Japan's Nikkei closed up 2.81% on Friday, with an intraday gain of 4.4%.
- The Nikkei ended the week down 0.85%, breaking a three-week winning streak.
- U.S. President Donald Trump suggested a potential peace deal with Iran could be signed soon.
- The S&P 500 and Dow Jones Industrial Average opened higher on Friday.
- The Nasdaq Composite opened lower.
- SpaceX is preparing for its market debut, expected to be the largest IPO in history.
Japan's Nikkei share average closed up 2.81% on Friday, recovering from earlier volatility, as investors responded positively to renewed hopes for peace in the Middle East. U.S. President Donald Trump suggested that a peace deal with Iran could be signed as soon as the weekend, potentially reopening the Strait of Hormuz to shipping. However, Iran countered that no final decision on an agreement had been reached.
The Nikkei finished at 66,020.04, after having surged as much as 4.4% during the session. For the week, the index was down 0.85%, ending a three-week winning streak. The broader Topix index gained 1.35% to 3,881.96.
Chip-related stocks led the market's advance, with Advantest and Tokyo Electron jumping 8.54% and 7.26%, respectively. Bank shares also saw gains, rising 0.67% for Mitsubishi UFJ Financial Group and 2.29% for Mizuho Financial Group, ahead of the Bank of Japan's policy meeting next week, where a rate hike to 1% is anticipated.
Despite the overall market rise, some major companies weighed on the Nikkei. Staffing agency Recruit Holdings fell 3.27%, electronic component maker Murata Manufacturing declined 4.58%, and camera and audio equipment maker Sony Group dropped 2.29%.
The benchmark S&P 500 and the blue-chip Dow Jones Industrial Average opened higher on Friday, underpinned by hopes for an imminent Middle East peace deal. The Dow Jones Industrial Average rose 300.0 points, or 0.59%, at the open to 51,148.73. The S&P 500 rose 16.6 points, or 0.22%, at the open to 7,410.85, while the Nasdaq Composite dropped 26.3 points, or 0.10%, to 25,783.359 at the opening bell. Investors were also gearing up for the market debut of Elon Musk's SpaceX.