SoftBank Rally Lifts Nikkei, Despite Weekly Loss

The Nikkei share average rebounded on Friday, driven by a significant rally in SoftBank Group, which rose 11.78% to become the biggest source of gains for the index. The Nikkei closed 1.26% higher at 65,020.94 but posted a weekly loss of 2%. Technology investor SoftBank's sharp gains were supported by falling yields as the group uses leveraged loans to invest in firms.

SoftBank's chip unit Arm Holdings rose 3.29% overnight, while memory chipmaker Kioxia gained 5.4%. The broader Topix recouped early losses to end 0.03% higher at 4,103.23, but was down 1.05% for the week.

Markets have almost fully priced in a Bank of Japan interest rate increase to 1.25% later this month and another hike by January. US Federal Reserve Governor Christopher Waller said he would support keeping rates unchanged this month if upcoming data confirmed inflation pressures were easing.