TOKYO: Japan’s Nikkei share average and the broader Topix index both touched record highs on Friday, although they eased somewhat as investors booked profits and positioned carefully before key US economic data due later in the day.

The benchmark Nikkei index exceeded its record high hit on March 22 to jump as high as 41,100.13 earlier in the session, while the broader Topix hit an all-time peak of 2,906.80, after breaking its previous record set in December 1989 on Thursday.

The Nikkei was up 0.3% at 41,051.49 by the midday break, while the Topix was down 0.11% at 2895.42.

Tokyo shares close at record high

With both the indexes reaching record figures, there’s a “sense of accomplishment” in the market, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

But gains eased as the market looked ahead to US nonfarm payrolls report out later on Friday, as investors adjusted positions ahead of the closely watched data.

Given the Topix’s and Nikkei’s gains, there was also some profit-taking, analysts said.

Japanese shares have gotten a boost this year in part from corporate governance reforms, which fuelled expectations that local companies will continue to increase returns.

A weak yen, meanwhile, has supported export-related shares such as automakers, and an exit from the Bank of Japan’s ultra-easy monetary policy is lifting bank shares.

These last two factors in particular helped the broader Topix hit all-time highs, said Sumitomo Mitsui DS Asset Management’s Ichikawa.

“It feels like the environment in Japan has changed considerably, including the economic situation.” Heavyweight stocks lifted the Nikkei.

Chip-related Tokyo Electron rose 1.9% and Uniqlo parent company Fast Retailing was up 0.9% AI-focused startup investor SoftBank Group edged about 1% higher.

Automakers dragged on Friday, with Toyota Motor falling 0.9% and Honda Motor down 2.3%.