Tokyo stocks finished higher on Friday in thin trade after falling for two straight sessions, with exporters boosted by a weaker yen. With most regional markets closed for the Easter break there were few catalysts to drive dealing at the end of an up-and-down week that was marred by the Brussels terror attacks. Toyota and Sony were among the biggest gainers as the yen eased after rallying against the greenback since earlier this month when the Federal Reserve lowered its rate hike forecasts for this year.
A healthy run-up in March for world markets, following a string of easing measures by central banks, has stoked positive sentiment, and analysts say Fed policymakers could now consider another hike in April or June. By the end of Friday's session, the dollar bought 113.08 yen, compared with 112.88 yen Thursday in New York. A weaker yen boosts exporters' profits from overseas, which tends to lift demand for their shares.
"We haven't had a lot of material to move on this week," Mitsuo Shimizu, equity strategist at Japan Asia Securities Group, told Bloomberg News. "The yen at around 110 to the dollar isn't too bad for exporters." Tokyo's benchmark Nikkei 225 index rose 0.65 percent, or 110.42 points, to close at 17,002.75. It advanced 1.66 percent over the week.
The broader Topix index of all first-section shares gained 0.84 percent, or 11.44 points, to 1,366.05. Over the week, the index tacked on 1.56 percent. A slate of Japanese and US data will be among the key trading cues for Tokyo investors next week, after figures on Friday showed Japanese inflation remained at zero in February for a second month in a row.
Factory output and Japan's latest jobless figures will offer key clues about the state of the world's number three economy. Also in focus will be US jobless claims next Friday for fresh hints about the health of the world's top economy. Automakers were among the main winners Friday. Toyota surged 2.81 percent to 6,180 yen, Nissan climbed 2.64 percent to 1,088 yen and Honda soared 2.82 percent to 3,093 yen.
Sony gained 1.15 percent to 2,896 yen and Uniqlo operator Fast Retailing, a market heavyweight, was up 0.46 percent at 36,410 yen. Trading houses Mitsui and Mitsubishi rebounded from steep losses the previous day after both companies this week said they expected to log their first ever full-year net losses due to impairments on resources projects. Mitsui, which slumped 7.50 percent on Thursday, ended 3.42 percent higher at 1,344 yen. Mitsubishi advanced 3.17 percent to 1,981 yen after tumbling more than four percent the previous day.
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