Risk appetite continues to recover, with the Nikkei 225 index posting its best weekly gain since August 2024.

With the market focus back on corporate financial reports, and Israel's decision to initiate direct talks with Lebanon easing investor concerns, the Nikkei 225 index in Japan recorded its largest single-week increase since August 2024. The TOPIX index remained flat, closing at 3,739.85 points. Out of the 1,652 constituent stocks in the index, 486 rose, 1,103 fell, and 63 remained unchanged. The Nikkei 225 index rose by 1.8%, closing at 56,924.11 points. On Friday, Fast Retailing became the best-performing stock within the Nikkei 225, with a 12% increase in its stock price. The operator of Uniqlo had previously raised its full-year operating profit guidance, surpassing market expectations, with analysts noting its strong overseas business growth momentum. Asset Management One's chief strategist Takeshi Ogihara stated, "Impressive performance is receiving positive feedback from the market, indicating a return of risk appetite. Although the news surrounding the Iran ceasefire is complex, negotiations have begun and the conflict has not escalated." The strategist mentioned that seasonal buying from overseas investors may provide support for the rebound in the Japanese stock market this month. Every April, with the year-end settlements of European and American companies' dividends, overseas investors usually increase their allocation to Japanese stocks. According to data from the Japan Exchange Group, in the first week of April, overseas investors net bought approximately 1.9 trillion Japanese yen worth of Japanese stocks.