Japan's Nikkei Extends Weekly Gains on Softer US Inflation

The Nikkei share average in Japan rose on Friday, extending its weekly advance due to softer-than-expected US producer prices. This eased concerns over an imminent Federal Reserve rate hike and supported broader risk appetite.

The benchmark Nikkei 225 gained 0.85% to 68,889.01 by the midday break and was on track for a weekly gain of around 5%. The Topix rose 0.69% to 4,204.99, putting it on course for a record closing high.

The strength in US equities spilled over into Japanese markets, while lower crude oil prices and fading expectations of an early US rate increase also supported sentiment toward Japanese shares.