The domestic currency market largely ignored the US Treasury Department's decision not to label China as a currency manipulator in the first semi-annual foreign exchange report issued by Treasury Secretary Janet Yellen.
Sino-US relations re-emerged as another key market focus as US Secretary of State Antony Blinken will meet with top Chinese officials on March 18 in Alaska, the White House said on Wednesday, the first high-level in-person contact between the two sparring countries under the Biden administration.
Panasonic was up 1.23 percent at 1,356 yen, while Sumitomo Mitsui Financial was down 0.54 percent at 3,297 yen ahead of their earnings reports due after market close.
Traders said the yuan and the dollar index remained range-bound for the time being, but the dollar could strengthen as the implementation of US stimulus boosts activity in the world's largest economy.
The moves on German Bunds run counter to other major government bonds around the world, where yields have been pushed up by the promise of a big stimulus package from US President-elect Joe Biden.
China will maintain policy support for its economic recovery, avoiding a sudden shift in policy, to help keep economic growth within a reasonable range in 2021, the Xinhua news agency said on Friday.