Japanese Stocks Gain Slightly, Yen Limits Nikkei's Gains
Japanese stocks closed higher on Friday (May 1), with the Nikkei 225 rising 0.38% to 59,513 and the TOPIX adding 0.04% to 3,729, paring some of the previous session's losses. Movements tended to be cautious as market participants assessed a combination of rapidly changing domestic and external factors.
Gains were restrained after the yen strengthened sharply, which was seen as related to potential government intervention. A stronger yen generally puts pressure on export-oriented issuers because it can erode competitiveness and yen-denominated profit projections, while also reducing the attractiveness of domestic assets to foreign investors when foreign exchange volatility increases.
At the stock level, gains were supported by certain technology stocks. SoftBank Group rose 3.9%, Tokyo Electron surged 6.9%, and Keyence gained 7.2%, helping keep the index in the green even though market sentiment has not fully recovered.
Risk focus also comes from Middle Eastern geopolitics. US President Donald Trump reiterated that the US will continue its naval blockade of Iranian ports, while Tehran has stated it will not abandon its nuclear program and has signaled continued control of the Strait of Hormuz. Markets will monitor the yen's movement, the response of the export sector, and developments on the Strait of Hormuz issue, which could impact risk premiums and global risk appetite. (srh)
Source: Newsmaker.id
