Tokyo stocks surged 1.95% Friday to close at their highest level in six months, boosted by a weaker yen and hopes the U.S. Federal Reserve will maintain its easy-money policy.
The benchmark Nikkei 225 index added 289.51 points to 15,165.92, the best finish since hitting a five-year high in late May. The Topix index of all first-section issues was up 1.68%, or 20.49 points, at 1,239.04.
Investor sentiment improved after U.S. Federal Reserve chair nominee Janet Yellen suggested the central bank would not start reeling in its easy-money policy in the immediate future as economic growth remained tepid and unemployment still too high.
"The market scenery has changed," said Toshihiko Matsuno, strategist at SMBC Friend Securities.
"Ms Yellen suggested the easy-money policy would continue to prop up the economy, which is theoretically a negative factor for the dollar," he added.
But her comments boosted risk sentiment and pushed up stock prices, which prompted stock investors to jump on the bandwagon, he said.
"Many market players moved for buy-backs," Matsuno said.
The Nikkei gained 7.7% or more than 1,000 points over the week.© (c) 2013 AFP