The Japanese Nikkei index rose on Friday after U.S. President Donald Trump signed an order to reduce tariffs on Japanese cars and other products.
The Nikkei climbed 0.73 percent to reach 42,890.85 points by mid-trading session.
Analysts said the index surpassed the 43,000-point level for the first time since August 25 shortly after the market opened, but some gains faded as investors sold shares to take profits.
The broader Topix index advanced 0.35 percent to 3,091.08.
Shoji Hosoi, chief analyst at Daiwa Securities, said, “Investors welcomed the news of Trump’s order to reduce tariffs on Japanese exports, but the gains at the open were excessive.”
Shares of Toyota Motor and Honda Motor rose 0.5 percent and 0.75 percent respectively.
Stocks related to semiconductors gained as Advantest and Tokyo Electron shares rose 2.54 percent and 0.07 percent respectively.
Hosoi predicted the Nikkei index would touch 44,000 points next week as sentiment improved with the tariff cuts on Japanese goods.
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