Japanese indices closed higher on Friday, April 18, with the Nikkei index rising more than 1% to its highest level since mid-January, following a three-week losing streak. This was supported by optimism about a trade agreement with the United States regarding tariffs. Negotiations between Economy Minister Akazawa and the US administration in Washington appear to be making significant progress.
In a related development, data released from Japan this morning showed an acceleration in core inflation in March. The core index, which includes petroleum products but excludes food prices, rose by 3.2% in March, up from 3% in February, matching expectations. The Nikkei index closed at 34,730, up 1.03%, or 352 points. The Topix index of the Tokyo Stock Exchange rose 1.14% today, closing at 2,550. Pharmaceutical companies led the sector with gains of approximately 4.68%, with shares of Chugai Corp. rising approximately 17% after an obesity drug showed good performance in clinical trials. Chip companies continued to decline.
Chinese indices were mixed today, with the broader CSI300 index rising 0.01% to close at 3,772 points. The Shanghai Composite Index of the Shanghai Stock Exchange closed down 0.11% at 3,276 points, amid anticipation of the People’s Bank of China’s meeting early next week, Monday. The bank is expected to keep the one-year and five-year interest rates unchanged at 3.1% and 3.6%, amid expectations of further stimulus from the Chinese government, especially in light of the escalating trade war with Washington. The Hang Seng Index, the main index of the Hong Kong Stock Exchange, rose by approximately 1.61% today, closing at 21,395 points, with NetEase leading the index’s gains, rising by more than 4.56%. Meanwhile, the South Korean Kospi index rose by approximately 0.53% today, closing at 2,483 points.