TOKYO: Japan’s Nikkei share average reversed losses to end higher on Friday, as comments from Bank of Japan Governor Kazuo Ueda eased worries that the central bank may raise interest rates aggressively.
The Nikkei settled 0.26% higher at 38,776.94, after falling as much as 0.6% earlier in the session on a stronger yen and worries about US tariffs. The index lost 1.2% for the week.
The broader Topix inched up 0.07% to 2,736.53.
Ueda said the central bank stands ready to increase government bond buying if long-term interest rates rise sharply.
“Ueda’s comments pushed yields on Japanese government bonds lower, which weakened the yen. That lifted demand for Japanese equities,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Rising inflation has driven expectations that the BOJ will keep raising interest rates higher and faster, pushing yields on Japanese government bonds (JGBs) to more than decade-high levels this week.
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