The Nikkei 225 Index Closes 2.32% Higher

The Nikkei 225 Index gained 966 points or 1.51 percent on Friday to close at 65102 points. Gains were led by Lasertec Corp (8.98%), Advantest (7.04%) and Mitsui Kinzoku (6.22%).

The Nikkei 225 Index climbed 0.9% to above 64,600 on Friday, rising for the third straight session as the Bank of Japan raised its policy rate by 25 basis points to 1.25% in a widely expected move. Investors will now look for guidance on the possibility of further tightening as policymakers grapple with elevated inflation and wage growth, along with pressure from US Treasury Secretary Scott Bessent. Meanwhile, Japan’s annual inflation rate held steady at 1.9% in August, while core inflation stayed below the BOJ’s 2% target for a seventh straight month at 1.7%. Technology and AI-related stocks led the gains following similar advances on Wall Street overnight, as concerns over AI development safety risks eased. Notable performers included Kioxia (3.2%), SoftBank Group (4.1%), Advantest (4%), Lasertec (5.5%), and Ibiden Co (3.3%).

The Nikkei 225 Index decreased 19 points or 0.03 percent on Thursday to close at 63904 points. The decline was led by Mitsui Kinzoku (-6.50%), Resonac Holdings (-4.42%) and Taiyo Yuden (-4.22%). On the upside, the strongest performers were Mitsui Engineering & Shipbuilding (5.81%), Japan Steel Works (5.18%) and Sumitomo Dainippon (4.61%).