Nikkei erases gains, Topix hits 8-month high

Japan’s Nikkei index erased earlier gains to close down 0.2% at 37,677.06. The index gained 1.89% for the week.

Japan’s Topix index rose to an eight-month high on Friday, as banking stocks gained following better-than-expected inflation data, but it pared most of its gains at the close on concerns about the impact of US tariffs.

The broader Topix index rose 0.29% to 2,804.16, its highest close since July 23 and its seventh straight session of gains, its longest winning streak since January 2024, according to Reuters.

“Investors sold some stocks in anticipation of a recovery in the US market,” said Yugo Tsuboi, an analyst at Daiwa Securities. “They will remain concerned about (US President Donald Trump’s) tariff policy next week as well.”