Japanese stocks closed the week in the green after a Reuters survey signaled the Japanese economy is likely to return to growth in the fourth quarter of 2025. This optimism is supported by solid corporate investment and relatively stable consumer spending.

The Nikkei 225 Index rose 0.8%, or 435.64 points, to close at 54,253.68. Market sentiment improved as market participants began to see opportunities for recovery after the previous period of weakness.

According to a Reuters poll, Japan's real GDP is expected to grow 1.6% (annualized) in the fourth quarter, rebounding from a 2.3% contraction in the third quarter. On a quarterly basis, growth is projected at 0.4%, indicating economic activity is starting to recover.

In the banking sector, two major Japanese banks Mitsubishi UFJ Financial and Sumitomo Mitsui Financial reportedly plan to increase their holdings of Japanese government bonds (JGBs) as rising interest rates make yields more attractive. However, this move remains overshadowed by the risk of unrealized losses from existing portfolios as yields rise.

Economic data showed that household spending in December fell 2.6% (real) year-on-year, missing expectations, while the January trade deficit narrowed as exports grew faster, helped by a weaker yen. At the issuer level, Ajinomoto surged after raising its profit outlook, Bandai Namco strengthened after raising its projections, and Fujifilm fell despite rising profits due to the market's response to its forward looking performance guidance. (asd) [sma]

Source : Newsmaker.id