TOKYO: Tokyo stocks advanced 0.67 percent Friday, recovering from earlier losses, on growing expectations of Japan's economic recovery on the back of its government's economic measures.
The benchmark Nikkei 225 index on the Tokyo Stock Exchange closed up 100.88 points to 15,138.12, while the Topix index of all first-section shares rose 0.64 percent, or 8.01 points, to 1,253.24.
Japanese shares faced selling pressure from the outset as foreign hedge funds took profits after US stocks dipped following recent record-breaking gains, brokers said.
"Large cap stocks continue receiving bids from mutual funds overseas, but many hedge funds have started taking profits," said Kenichi Hirano, market analyst at Tachibana Securities. "Small- to mid-cap stocks are suffering."
But the Nikkei index returned to the positive territory in afternoon trade "as a lot of players were eager to buy on dips", said Takero Inaizumi, strategist at Mizuho Securities.
Friday's late-buying was also supported by high expectations from Japanese Prime Minister Shinzo Abe's economic measures and monetary easing policies, Inaizumi said.
Local media said Abe later in the day would unveil the next stage of his economic measures, dubbed "Abenomics", which is intended to turn around years of deflation in the world's third-largest economy.
Japanese stocks have surged since December as the yen plunged with the government pushing for active spending and the Bank of Japan carrying out massive monetary easing.
The Dow Jones Industrial Average dropped 0.28 percent to 15,233.22 on Thursday, while the broad-based S&P 500 fell 0.50 percent to 1,650.47, after a disappointing earnings report from Walmart and some middling economic data.
The dollar was at 102.50 yen in afternoon Asian trade against 102.22 yen in New York late Thursday.
The euro bought $1.2852 and 131.77 yen against $1.2886 and 131.72 yen in US trade.
In Tokyo stock trade, exporters were mixed as Sony fell 1.72 percent to 2,046 yen but Toyota rose 0.31 percent to 6,470 yen.
Honda rose 0.11 percent to 4,180 yen after the Japanese automaker said it would return to Formula One in 2015 as an engine supplier to British team McLaren.
ANA fell 0.45 percent to 219 yen after it said a modified Dreamliner had experienced a fault earlier this month, but insisted the incident would not affect the restart of the high-tech planes. (AFP)
