Nikkei Jumps 4% as Wall Street Rally Boosts Tech Shares

Japan's Nikkei share average saw a significant jump of over 4% on Friday, driven by a rally on Wall Street. The surge was led by tech shares, with Microsoft at the forefront after delivering forecasts that eased concerns about AI infrastructure spending.

The Nikkei rose to 64,781.35 by 0025 GMT in its second consecutive session of gains, while the broader Topix gained 1.4%. Advantest, a chip-testing equipment manufacturer, saw an impressive gain of 18%, followed closely by Tokyo Electron's 9.3% increase and SoftBank Group's 15% rise.

The Bank of Japan will make its monetary policy decision later in the day, with expectations pointing towards keeping policy steady and signaling its resolve to continue pushing up borrowing costs. This move comes as mounting price pressures from the weak yen and Middle East conflict risk driving underlying inflation above the target.