Tokyo stocks closed higher Friday, led by heavyweight semiconductor-related shares after solid earnings from U.S. technology firms, although gains were capped by caution ahead of U.S. employment data.
The 225-issue Nikkei Stock Average ended up 146.56 points, or 0.41 percent, from Thursday at 36,158.02. The broader Topix index finished 5.64 points, or 0.22 percent, higher at 2,539.68.
On the top-tier Prime Market, gainers were led by miscellaneous product, information and communication, and land transportation shares.
The U.S. dollar remained weak in the lower 146 yen range in Tokyo after long-term Treasury yields fell overnight, as higher-than-expected U.S. weekly jobless claims hinted at a cooling labor market, which could slow inflation.
On the stock market, semiconductor and tech issues drew buying on improved sentiment from an overnight rebound on Wall Street, as well as strong earnings reports from U.S. tech giants Meta Platforms Inc. and Amazon.com Inc., analysts said.
The overall market was also supported by continued bullish sentiment toward Japanese equities by overseas investors, although shares gave up some of their earlier gains ahead of the U.S. January jobs report due out later in the day, analysts said.
"It is common for the upside to be heavy before a weekend that employment data is released," if there are no other fresh trading cues, said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co.
