Tokyo stocks climbed to a two-week closing high on Friday after Tokyo Electron Ltd and other chip-related stocks got a boost from a bullish revenue outlook by global industry leader Intel Corp Stronger-than-expected Japanese capital spending data, together with a halt in the yen's rise against the dollar and a sharp drop in oil prices, also helped support shares.
"The big fall in oil prices and strong outlook from Intel were Christmas present from overseas for Japanese investors," said Hiroyuki Nakai, chief strategist at Tokai Tokyo Securities.
The Nikkei average firmed 0.93 percent or 101.82 points to 11,074.89, its highest close since November 19. The broader TOPIX index rose 0.47 percent to 1,110.53. Gainers outnumbered decline's 746 to 673.
Volume picked up a notch, with 1.391 billion shares changing hands on the first section, the highest daily total since November 15.
Advantest Corp, the world's biggest maker of chip testing devices, jumped 2.57 percent to 7,970 yen, while Tokyo Electron, the world's second-biggest manufacturer of chip making equipment, was up 2.95 percent at 5,940 yen after climbing as far as 5,990, its highest since late June.
The electrical appliances index rose 1.69 percent and were the biggest sector gainer after Intel, the world's biggest chipmaker, raised its quarterly revenues target, citing strong global demand for microprocessors.
Overall gains were muted, however, since a recent series of data has suggested that Japan's export-led recovery is starting to sputter, reducing investor appetite for shares.
A Finance Ministry survey on Friday provided one bright spot, showing that Japanese companies increased spending on plant and equipment by 14.4 percent in July-September from the same period last year.
That followed a 10.7 percent rise in April-June. Some analysts said the data had raised the chances of an upward revision in gross domestic product figures for the July-September quarter, due next on Wednesday, although few saw any such revision being big enough to give stocks much of a boost.