Tokyo stocks continued their winning streak for a fourth consecutive session on Friday, reaching their highest level in six months after tracking overnight gains on Wall Street.

The benchmark Nikkei 225 index surged 566.21 points (1.43%) from Thursday's close to finish at 40,150.79—its highest closing level since December 27 and its first close above the 40,000-point threshold since January. Meanwhile, the broader Topix index, which includes all First Section stocks on the Tokyo exchange, rose 35.85 points (1.28%) to 2,840.54.

Wall Street Momentum Fuels Rally

U.S. benchmarks, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all closed higher in the previous session. According to Japan’s NHK Broadcasting, the optimistic sentiment in U.S. markets was driven by:

1. Expectations of extended deadlines for tariffs on certain goods.

2. Growing speculation about potential interest rate cuts following reports that U.S. President Donald Trump might nominate a successor to Federal Reserve Chair Jerome Powell earlier than usual.