Nikkei Rallies on SoftBank Surge as Markets Price In BOJ Rate Hike

The Nikkei share average rose on Friday after a four-session decline, boosted by a strong overnight finish from Wall Street and a significant rally in SoftBank Group.

SoftBank, an index heavyweight, surged 10.28% to become the biggest contributor to the Nikkei's gains, driven by a 3.29% rise in its chip unit Arm Holdings overnight.

The broader Topix, however, eased 0.18% to 4,094.48 and was down 1.26% for the week.

Market analyst Shuutarou Yasuda of Tokai Tokyo Intelligence Laboratory noted that while the Nikkei's gains seemed modest given Wall Street's overnight strength, it's because US stocks rose on curbed rate-hike bets, but the Bank of Japan is set to raise interest rates.