Tokyo's benchmark stock index on Friday closed at a fresh high for the year, continuing a global rally sparked by the European Central Bank's decision extend its stimulus programme. Investors cheered dovish aspects of the ECB's decision, including the pressng on with its bond-purchase programme to the end of 2017, well past its planned March cut-off.
"The latest move by the ECB signals easy monetary policy for a sustained period," Juichi Wako, a senior strategist at Nomura, told Bloomberg News. The Nikkei 225 climbed 1.23 percent, or 230.90 points, to end the day at 18,996.37. Over the week, the index tacked on 3.09 percent. The broader Topix index of all first-section shares was up 0.84 percent, or 12.67 points, at 1,525.36. It gained 3.20 percent over the week.
Next week, investors will be keeping a close eye on the Bank of Japan's Tankan business survey, after Tokyo on Thursday revised down its third-quarter economic growth reading. On Friday, Japanese shares also won support from a rise in the dollar against the yen, which boosts exporters' profits.
The greenback has been on the rise in anticipation of an expected interest rate hike by the US Federal Reserve, which meets next week. "A rise in US interest rates, backed by an economic recovery, should be good for Japanese banks that operate internationally, while the yen hovering around 114 to the dollar provides relief," Wako said. The dollar bought 114.41 yen Friday from 113.95 yen in New York.
In Tokyo share trading, Sony jumped 3.28 percent to 3,368 yen while Toyota was up 0.27 percent at 7,003 yen. Nintendo surged 3.64 percent to 29,255 yen after its US head confirmed to Bloomberg News that it expects to see 20 million downloads for its keenly awaited new Super Mario game for iPhones. Banking giant Mitsubishi UFJ rose 2.23 percent to 762.8 yen, while rival Mizuho Financial Group was up 1.09 percent at 221.8 yen. Energy-linked shares soared on the back of stronger crude oil prices, with Inpex up 4.13 percent to 1,248 yen and Japan Petroleum 5.36 percent higher at 2,789 yen.