The Nikkei stock index ended at a new 34-year high Friday, nearing an all-time record, as a wide range of issues were bought amid optimism over the U.S. economy.
The 225-issue Nikkei Stock Average rose 329.30 points, or 0.86 percent, from Thursday to 38,487.24, its highest close since Jan. 4, 1990. The broader Topix index finished 32.88 points, or 1.27 percent, higher at 2,624.73, also the highest close since Feb. 20, 1990.
On the top-tier Prime Market, gainers were led by oil and coal product, mining, and real estate issues.
The U.S. dollar rose to the lower 150 yen range in Tokyo as traders sold the Japanese currency, seen as a safe-haven asset, after stocks gained sharply multiple times during the day, dealers said.
On the equities market, the Nikkei jumped close to its all-time intraday high of 38,957.44 set in December 1989, in early trading, on buying encouraged by Wall Street gains overnight amid growing prospects of an earlier-than-expected interest rate cut by the Federal Reserve, analysts said.
Investor sentiment was lifted after weaker-than-expected U.S. retail sales data fueled expectations that the Fed could be on track to reduce its benchmark rate, which would lead to lower borrowing costs in the world's largest economy, analysts said.
"Expectations of a soft-landing in the United States remained intact, helping to translate to risk-on buying in the Japanese market," said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co.
Semiconductor-related issues continued to boost the market after U.S. chip manufacturing equipment maker Applied Materials Inc. reported stronger-than-expected earnings, but buying lacked momentum ahead of the earnings release Wednesday by U.S. chip giant Nvidia Corp.
