Japan's Nikkei stock average rose 0.6 percent on Friday as exporters such as Sony Corp climbed on a softer yen and investors adjusted positions before the outcome of a Group of Eight (G8) finance ministers' meeting. Still, the benchmark Nikkei average posted its worst weekly drop in three months as worries about rising inflation and interest rate hikes elsewhere dampened investors' appetite for stocks.
Trade swelled to 3.1 billion shares from last week's daily average of 2.4 billion on the Tokyo exchange's first section, the third-highest this year, with volume increasing in connection with the settlement of futures and options.
Non-ferrous metal smelters such as Sumitomo Metal Mining Co Ltd rose after nickel prices leapt on supply worries, but shippers weighed on the market as investors worried about the impact of high oil prices on corporate earnings amid concerns about the stymying effects of inflation. The Nikkei ended the day up 85.13 points at 13,973.73. For the week, it lost 3.6 percent.
The broader Topix gained 0.6 percent to 1,371.57. The dollar slipped 0.2 percent against the yen from late US trade on Thursday to 107.70 yen stepping back from a nearly four-month high of 108.08 yen hit the previous day.
Finance ministers from the G8 rich nations will discuss the global economy, soaring oil and food prices, and climate change challenges on Friday and Saturday in Osaka, western Japan, to prepare for the G8 leaders' summit in July.
There will be no section on currencies in the joint statement expected to be released around 1:30 pm (0430 GMT) on Saturday. Still, markets will be keen to hear what finance ministers say about risks from inflation and slowing growth on the sidelines of the G8 gathering. Sony gained 1.6 percent to 5,210 yen and camera and office equipment maker Canon Inc rose 0.9 percent to 5,440 yen.
Honda Motor Co Ltd jumped 3.2 percent 3,840 yen. Sumitomo Metal Mining advanced 3.4 percent to 1,687 yen and rival non-ferrous metal smelter Mitsui Mining & Smelting added 1.2 percent to 333 yen. London Metal Exchange nickel hit $24,600 a tonne, its highest since May 22, after BHP Billiton surprised the market with the early shutdown for repairs of its Kalgoorlie nickel operations in Western Australia.
Shipping firms extended losses as a key freight index had its biggest drop ever on concerns about a pullback in demand for commodities from big consumers such as China.
Mitsui OSK Lines Ltd shed 3.4 percent to 1,391 yen, Kawasaki Kisen Kaisha Ltd declined 3.3 percent to 1,001 yen and Nippon Yusen KK skidded 2.7 percent to 954 yen. Elsewhere, J-Power lost 2.9 percent to 4,070 yen on reports that US proxy advisory firm Glass, Lewis & Co recommended shareholders oppose a proposal by UK fund TCI for the electricity wholesaler to raise its dividend. Advancing stocks outpaced declining ones by a ratio of more than 2 to 1.