Japanese stocks advanced Friday, with the benchmark Nikkei index hitting a seven-week high on hopes for further monetary easing by the central bank.
The Nikkei 225 stock average rose 86.31 points, or 0.8 percent, to 10,751.26 – its best finish since Jan. 21 The broader Topix index added 0.6 percent to 936.38.
Bolstering sentiment was speculation about the Bank of Japan’s policy board meeting next week. Faced with mounting pressure to fight deflation, the central bank is expected to ease policy, possibly by expanding a low-interest loan program it introduced in December, analysts and media reports said.
“The BOJ appears not to be convinced of the solidness of the economic recovery in the next several months, on the heel of ongoing uncertainties of the global economy,” said Masaaki Kanno, chief economist at JPMorgan Securities Japan.
Financial names benefited from the broad-based gains.
Sumitomo Mitsui Financial Group Inc. rose 1.7 percent to 2,930 yen, and Mitsubishi UFJ Financial Group Inc. closed up 1.3 percent at 467 yen. Nomura Holdings Inc., Japan’s biggest securities house, rose 1.7 percent to 668 yen.
Automakers also advanced as the dollar held up against the yen. Nissan Motor Co. jumped 2.4 percent to 764 yen, while Honda Motor Co. rose 0.9 percent to 3,300 yen, and Toyota Motor Corp. finisher 0.4 percent higher at 3,475 yen.
In currencies, the dollar fell to 90.29 yen from 90.50 yen late Thursday. The euro rose to $1.3718 from $1.3678.