Nikkei Bounces Back on Tech Lift Amid Rate Expectations Shift

Japan's Nikkei 225 index bounced back on Friday, ending a four-day losing streak as tech shares led gains. The index rose 1.26% to close at 65,021.

The rebound came after Fed Governor Christopher Waller said he would support keeping US Federal Reserve rates unchanged if inflation continues to ease. This reduced expectations of a rate hike this month.

Investors are also watching the Bank of Japan for a possible rate increase at its September meeting as it looks to manage inflation.

Tech and AI-related stocks were among the top gainers, with Kioxia Holdings jumping 5.4%, SoftBank Group surging 11.8%, and Taiyo Yuden gaining 6.4%. Advantest and Fujikura also rose 2.5% and 2.1%, respectively.

Despite the recovery on Friday, the Nikkei fell 2.08% over the week due to higher oil prices and rising global bond yields putting pressure on Japanese equities.