Tokyo stocks rose slightly Friday on gains in technology shares, but advances were limited by caution over a possible intervention by Japanese authorities to arrest the yen's depreciation, which has boosted export-related issues.
The 225-issue Nikkei Stock Average ended up 80.92 points, or 0.21 percent, from Thursday at 39,523.55. The broader Topix index finished 12.68 points, or 0.46 percent, higher at 2,759.64.
On the top-tier Prime Market, gainers were led by real estate, consumer credit, and glass and ceramic product issues.
The U.S. dollar remained firm after hitting a fresh 34-year high of 153.32 yen in New York overnight, as U.S. wholesale prices in March increased at their fastest pace in 11 months, reinforcing the view that the Federal Reserve will keep interest rates elevated longer than previously expected, dealers said.
But the dollar was capped in Tokyo amid vigilance about a possible yen-buying intervention by Japanese authorities after the finance minister warned the government would respond appropriately to excessive volatility and was not ruling out any options.
Authorities last conducted a yen-buying, dollar-selling operation in October 2022 after the dollar climbed to 151.94 yen.
On the stock market, high-tech issues led gains following a record high on the technology-heavy Nasdaq index overnight as well as a sharp rise in a key U.S. semiconductor index.
But the Nikkei index trimmed gains amid apprehension over a stronger yen resulting from possible yen-buying, dollar-selling operation by Japanese authorities, analysts said. A firmer yen reduces exporters' overseas profits when repatriated.
"With the dollar in the 153 yen range, (Japanese authorities) may conduct an intervention at any moment," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
A stronger yen could negatively impact profits for exporters and bring down the stock market, he said.
The Nikkei benchmark was also weighed down by heavyweight Fast Retailing, operator of the Uniqlo clothing chain, after its earnings report for the September-February period and projections, released the previous day, failed to meet market expectations.
