According to Jinshi Data, the Nikkei 225 index started strongly on Friday, rising as much as 2.7% as optimistic risk sentiment spread on Wall Street, while the US dollar and US Treasury yields remained largely stable. At the same time, the weakening of the yen also contributed to the rise in the stock market to a certain extent.

Last week's market turmoil gave way to calm this week after a slew of U.S. economic data eased recession fears in the world's largest economy and tempered expectations for aggressive U.S. rate cuts. The Nikkei 225, which suffered heavy losses last week as yen carry trades were unwound, is on track to rise 7.6% this week, its best weekly performance since April 2020.