From Japan Nikkei The stock average rose on Friday for its best week since mid-August, but gains were limited by a strengthening yen after the Bank of Japan set the stage for further interest rate hikes.
Heavy technology Nikkei The index closed the day up 1.53 percent at 37,723.91 points, with chip stocks rising in line with their U.S. peers. The index gained 1.57 percent for the week.
The broader Topix index advanced 0.97 percent.
He Nikkei rose as much as 2.21 percent in morning trading, paring gains as the yen strengthened after the BOJ upgraded its assessment of consumption and highlighted inflation’s heightened sensitivity to currency fluctuations.
The BOJ kept short-term interest rates steady at 0.25 percent, as widely expected after hikes in March and July.
In the policy statement, officials judged that “private consumption has followed a moderate increasing trend,” a more optimistic assessment than the previous view that consumption was “resilient.”
“The trajectory, while gradual, remains upward for the BOJ,” said Naomi Fink, chief global strategist at Nikko Asset Management.
“Japan is finally moving away from several decades of stagnant growth, so there is some justification for the BOJ to remain on the back foot.”
The yen strengthened 0.45 percent to 141.98 per dollar by 0620 GMT, shortly before a scheduled news conference by BOJ Governor Kazuo Ueda.
A stronger currency reduces the value of overseas earnings for many of Japan’s big exporters.
Investors may be especially cautious ahead of a long weekend, as Japan will be closed for a national holiday on Monday.
Of the Nikkei Of its 225 components, 160 rose, 63 fell and two remained stable.
Shares of chipmaking equipment giant Tokyo Electron rose 5.32 percent, placing it among the top… Nikkei Top 5 percentage gainers
Automakers pared early gains, with Toyota Motor Corp. closing the day up 0.9 percent and Honda up 0.84 percent.
Uniqlo owner Fast Retailing rose 4.16 percent, making it the Nikkei The highest support in terms of points due to its high weighting.
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