The Nikkei 225 Index climbed 1.84% to close at 56,924 on Friday and posted a strong weekly gain of 7.15%, as a two-week US-Iran ceasefire boosted risk appetite. Investors now look ahead to diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in discussions with Iranian officials. However, sentiment remained cautious amid ongoing Israeli strikes on Lebanon and continued disruption in the Strait of Hormuz, which could complicate negotiations. Meanwhile, global technology and artificial intelligence stocks rallied after CoreWeave secured a much larger $21 billion agreement to provide computing capacity to Meta Platforms. In Japan, tech shares led gains, with Kioxia Holdings, Fujikura and Lasertec rising between 7.4% to 12%. Fast Retailing also surged 12% after raising its full-year operating profit forecast, supported by robust demand from the US and Europe, while Japan continued to serve as a steady domestic anchor.
India’s BSE Sensex rose 1.2% to close at 77,550 on Friday, halting losses from the prior day, in line with major peers. Despite a fragile ceasefire between the US and Iran, sentiment improved on hopes of positive negotiations between the two countries on Saturday. Among sectors, almost indices saw gains, indicating broad-based buying interest. Banking and financial stocks led the rally, alongside consumer discretionary. ICICI Bank, Axis Bank, SBIN, Bajaj Finance, Bajaj Finserv and HDFC Bank rose between 1.7%-3.2%. Other top performers included Asian Paints, Mahindra & Mahindra and IndiGo. The IT sector stayed under pressure as TCS fell 2.5% after reporting an annual revenue decline in FY2026, which outweighed a quarterly earnings beat, highlighting ongoing weakness in client spending and rising costs. Sun Pharma plunged 3.7% amid reports that the company has moved to the final stage of its proposed $12-billion acquisition of US-based Organon & Co. The index gained 5.8% this week.
