Japan's Nikkei rises on SoftBank rally, but set for weekly fall
EWJ•SoftBank, chip shares lead gains
Technology investor SoftBank Group 9984.T jumped 10.28% to become the biggest source of gains for the Nikkei after its chip unit Arm Holdings ARM.O rose 3.29% overnight. Memory chipmaker Kioxia 285A.T rose 4.94%.
Yasuda said SoftBank's sharp gains were also supported by falling yields as the group uses leveraged loans to invest in firms.
Rate expectations and bond yields
"Given the overnight strength of Wall Street, the Nikkei's gains seemed modest," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
"That is because U.S. stocks rose on curbed rate-hike bets, but the Bank of Japan is set to raise interest rates."
Markets have almost fully priced in a Bank of Japan interest rate increase to 1.25% later this month. They have also priced in another hike by January, according to data from money market broker Tokyo Tanshi.
U.S. Federal Reserve Governor Christopher Waller said on Thursday he would support keeping rates unchanged this month if upcoming data confirmed inflation pressures were easing.
Japanese government bond yields extended sharp declines on Friday, with the 10-year JGB yield JP10YTN=JBTC falling 6 basis points to 2.905%.
