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Japan's Nikkei share index rose by 1% on Friday, marking its best weekly performance in three months. Investors grew more optimistic about U.S. President Donald Trump's potential to secure trade deals with key trading partners, including Japan.

The Nikkei reached a two-week high of 34,758.97 before closing the day up 1.03% at 34,730.28, despite lighter trading due to the Easter holiday in most global markets. The broader Topix index gained 1.14%.

For the week, the Nikkei rose 3.41%, snapping a three-week losing streak and recording its best weekly gain since January 20. On Thursday, President Trump and Italian Prime Minister Giorgia Meloni expressed confidence in resolving trade tensions between the U.S. and the European Union. Trump also hinted at the possibility of ending the tit-for-tat tariff hikes with China.

The day before, Japan’s chief negotiator, economy minister Ryosei Akazawa, began talks in Washington, stating that Trump had emphasized making a deal with Japan a "top priority." Trump praised the discussions with Japan on social media, calling them "Big Progress!"

"The mood was generally positive, highlighted by Trump's social media post, which featured a smiling photo of him with Akazawa in the Oval Office," said James Brady, vice president at advisory firm Teneo. "The discussions seem to have started off well."

Shipping stocks performed well, with the sector gaining 2.92%. Pharmaceuticals led the gains, with a 4.68% rise, spurred by Chugai Pharmaceutical's 17.54% surge following the success of an obesity drug in clinical trials, which it developed and licensed to Eli Lilly.

However, chip sector stocks weighed on the Nikkei, as investors resumed selling after a brief rebound on Thursday. Advantest fell 2.26%, and Screen Holdings dropped 3.97%, making them the worst performers on the index.

Paraphrasing text from "Investing.com"all rights reserved by the original author