Tech stocks help Nikkei eke out small gain

Japan's Nikkei share average closed slightly higher on Friday as technology stocks tracked Wall Street's overnight gains, while a stronger yen weighed on market sentiment and U.S. tariff worries lingered.

The Nikkei rose 0.15% to 39,572.49 to post its third straight session of gains. It, however, fell 1% for the week in its fourth weekly drop in five.

The broader Topix gained 0.24% to 2,788.66 on Friday.


Chip-making equipment maker Tokyo Electron rose 3.33% to provide the biggest boost to the Nikkei.

Fujikura, which makes fibres used by data centres and is a gauge for AI-related investments, jumped 4%.

"Gains in Japanese equities were limited as the yen strengthened and the market was also concerned about U.S. President Donald Trump's tariff policy and its impact on Japanese firms," said Kentaro Hayashi, a senior strategist at Daiwa Securities.

Trump has said Feb. 1 would be the date that he imposes 25% tariffs on imports from Canada and Mexico.

The yen was on track for its best monthly start to the year since 2018 on Friday, helped by the view that the Bank of Japan (BOJ) is likely to keep raising rates this year while its global peers elsewhere look to ease policy.

A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.

"Although the market was not totally pessimistic. Investors became selective and bought stocks with a positive outlook and returns," Hayashi said.

NEC surged 18% after the computer maker raised its annual operating profit forecast and announced a 5-for-1 stock split.

Among losers, scandal-hit Fuji Media fell 4% after the television network operator slashed its annual net profit forecast by two-thirds citing a sharp drop in advertising revenue.

Truck maker Hino Motors tumbled 12% to become the worst percentage loser on the Nikkei.