The Nikkei 225 Index climbed 0.6% toward 59,500 on Friday, while the broader Topix Index added 0.4% to 3,730, recouping part of the previous session’s losses as investors digested fresh inflation data ahead of next week’s Bank of Japan policy meeting. Japan’s core inflation accelerated for the first time in five months, propelled by higher energy costs, though it remained below the BOJ’s 2% target.
Markets broadly expect the central bank to leave interest rates unchanged, as policymakers contend with elevated uncertainty linked to developments in the Middle East. Stalled US-Iran peace efforts and persistent blockades in the Strait of Hormuz have continued to support higher energy prices and amplify inflation risks.
Technology shares led the advance, with notable gains in Lasertec (3%), Fujikura (2.2%), Advantest (1.5%), Ibiden Co (8.9%), and Tokyo Electron (0.8%). For the week, the Nikkei 225 is on course to rise more than 1%, while the Topix is poised to decline by over 1%.
