09.01.202600:55:03UTC+00Japanese Shares Rise, Fast Retailing Surges

On Friday, the Nikkei 225 Index climbed by 0.8% to approximately 51,550, while the broader Topix Index advanced by 0.4% to reach 3,498. This uptick in Japanese shares marks a recovery from a two-day downturn, as concerns over a dispute with China have eased. Investor sentiment improved following China's assurance that its export controls on dual-use items headed for Japan would not impact civilian use, stating that companies engaged in standard civilian trade should not be worried.

Domestically, Japanese household spending saw an unexpected rise in November, buoyed by winter-related purchases and diminishing inflationary pressures, which collectively supported consumer spending.

In corporate developments, Fast Retailing, the parent company of Uniqlo, surged by more than 7% after revising its full-year earnings forecast upwards. This adjustment comes in response to a 34% increase in first-quarter profits, driven by robust sales performance in Europe and North America. Other noteworthy performers included Tokyo Electron, which gained 1.3%, Mitsubishi UFJ up by 1.8%, IHI Corp rising by 1.9%, Toyota Motor with an increase of 1.8%, and Kawasaki Heavy Industries advancing by 1.3%.