The Nikkei 225 Index declined 0.4% to around 39,300 on Friday, ending a three-day rally as the yen sharply rebounded overnight. The currency's rise followed expectations of a softer US PCE inflation reading and a delay in President Trump's reciprocal tariffs. A stronger yen typically weighs on Japan's export-driven industries and makes Japanese assets pricier for foreign investors. Meanwhile, investors continued to navigate Japan's busy earnings season, which has yielded mixed results so far. Notable losses were seen in index heavyweights such as IHI Corp (-2.2%), Fast Retailing (-1.1%), and Tokyo Electron (-0.8%). However, Sony Group surged 7.5% after reporting a 37% increase in quarterly profits from its gaming unit and 9.4 million PlayStation 5 units sold. Despite Friday's dip, the Nikkei 225 Index is on track for a weekly gain of over 1%.

Source: Trading economi