Nikkei gains 1% as tech shares rally ahead of BOJ rate call

Japan's benchmark Nikkei share average climbed 1% to 64,786.86 in early Friday trade, as investors bought into AI and semiconductor-related names following a technology-driven advance on Wall Street overnight.

AI-focused startup investor SoftBank Group surged 5%, while chip-equipment makers Advantest and Tokyo Electron gained 4% and 3.6% respectively.

The Bank of Japan's policy decision, due later in the day, drew little reaction from the market. A widely anticipated interest rate increase had already been discounted well in advance, leaving investors focused on stock-specific moves.

Tech companies, which typically carry high leverage, are sensitive to tighter monetary policy. Those concerns have been easing as a fall in crude oil prices reduces inflationary risks.

Japanese tech shares had slipped on Thursday as investors picked up beaten-down gaming stocks instead. That rotation reversed on Friday, with tech staging a quick comeback and gaming names giving up gains — Nintendo and Konami each fell about 2%.

The broader Topix index lost 0.2%, reflecting its smaller share of AI-related companies.

Within the Nikkei, the advance was narrowly balanced: 111 of the index's 225 components rose, 113 declined and one traded flat.