The Nikkei 225 Index surged 1.2% to surpass 37,200, while the broader Topix Index gained 1% to 2,720 on Thursday, reaching their highest levels in a week.
The rally mirrored Wall Street's rebound, driven by softer-than-expected US inflation data that eased market concerns about the economy. However, investor sentiment remained cautious as US President Donald Trump's steel and aluminum tariffs took effect on Wednesday, raising fears of a widening global trade war.
In Japan, major firms agreed to significant wage hikes for the third consecutive year during annual spring labor negotiations, aiming to help workers manage inflation and address ongoing labor shortages. Technology stocks led the charge following similar moves on Wall Street overnight. Notable gainers included Advantest (+5.9%), Disco (+5.8%), SoftBank Group (+1.7%), Tokyo Electron (+1.8%), and Kioxia Holdings (+2.3%).
Source: Trading Economics
