Japanese shares closed higher on Friday, recovering from earlier losses after weaker-than-expected US jobs data raised hopes that the US Federal Reserve may slow the pace of interest rate hikes this year.

The Nikkei 225 Index climbed 1.47% to close at 69,744. The softer US labour market data helped improve investor sentiment, although concerns over high valuations, heavy investment and rising competition in the artificial intelligence sector continued to limit gains.

A stronger yen also remained a challenge for the market. The Japanese currency surged nearly 1% on Thursday amid speculation that authorities could intervene in the foreign exchange market, making exporters less attractive to investors.

Among individual stocks, Kioxia Holdings surged 9.2%, while Kokusai Electric jumped 15.1%. Other gainers included Fast Retailing (+2.7%), Sony Group (+1.5%) and Toyota Motor (+1.3%).

Powered by Capital Market - Live News