Japan's Nikkei share index recorded its biggest weekly gain in nearly two years on Friday before trimming early gains as worries grew that talks to end the Iran war would be difficult.
The index has hit consecutive record highs this week and recorded its seventh straight session of gains on Friday, as optimism for AI-related shares grew. It posted a 7.9% rise for the week, its sharpest weekly gain since August 2024.
On the day, the Nikkei closed 0.28% higher at 71,250.06, after spiking 1.3% to a record of 71,952.99.
The broader Topix fell 0.57% to 4,044.96. Switzerland said U.S. talks with Iranian negotiators on a pact to end the conflict in the Middle East would not take place on Friday, as Vice President JD Vance dropped plans to travel to Switzerland, adding to uncertainty over whether a lasting truce can be found. "The market expects more negotiations to come to end the war as there is a 60-day period to reach a final agreement, but this news came too suddenly and is an indication of a tough road ahead," said Daisuke Hashizume, senior strategist at Daiwa Securities.
"In addition, the market wanted to lock in profits for the recent rally before the weekend, especially since the U.S. market is due to be closed on Friday," he added.
On Friday, chip-related Advantest and Kioxia rose 4.75% and 12%, respectively. Fujikura surged 15.69% to a daily limit high of 5,161 yen after the fibre-optic cable maker raised its annual net profit forecast to 229 billion yen ($1.42 billion).
The AI data centre materials maker had initially guided for a 156 billion yen profit, just shy of last year's 157.1 billion yen.
"Fujikura raised its forecast at a time when the market turned cautious about the outlook of fibre optic cable makers," Kazuaki Shimada, chief strategist at IwaiCosmo Securities, said.
Fujikura's peer Furukawa Electric surged 15%.
Bank shares dragged the Topix lower, with Mitsubishi UFJ Financial Group and Mizuho Financial Group down 2.85% and 4.42%, respectively.
