The Nikkei 225 Index gained 0.26% to close at 38,777, while the broader Topix Index edged up 0.07% to 2,737 on Friday, reversing earlier losses. The rebound followed comments from Bank of Japan Governor Kazuo Ueda, who stated that the central bank is prepared to increase government bond purchases if long-term interest rates rise sharply. Meanwhile, data showed that core inflation in Japan accelerated to 3.2% in January, up from 3% in December, exceeding forecasts of 3.1%. Headline inflation also rose to 4%, up from 3.6%, the highest level in two years. These figures reinforced expectations that the BOJ will continue raising interest rates this year. In corporate news, Nissan Motor surged 9.5% after reports emerged that a Japanese group plans to approach Tesla for an investment in Nissan, following the collapse of merger talks with Honda Motor. Other notable gainers included Dena Co (+13.9%), Tokyo Electron (+1%), and Lasertec (+2.7%).

Source: Trading Economi