The Nikkei 225 Index edged up 0.15% to around 39,570, while the broader Topix Index gained 0.3% to 2,790 on Friday, marking a third consecutive day of gains for Japanese shares as investors responded positively to strong economic data.

Retail sales in Japan exceeded expectations in December, and industrial production returned to growth. The country's unemployment rate also dropped to 2.4% in January, down from 2.5% in the previous two months, defying forecasts of no change.

Local stocks also drew support from a positive lead on Wall Street, where solid earnings from major US tech companies provided a boost. Technology stocks were among the top performers, with Advantest up 0.4%, Tokyo Electron gaining 2.7%, and Hitachi rising 4.4%.

Despite Friday's gains, the Nikkei and Topix indexes are still on track to lose about 1% for the week, following Monday's selloff sparked by concerns over a more efficient AI model emerging from China.

Source: Trading Economics