Japans Nikkei Rose To A Three Week High On Friday

Japan's Nikkei rose to a three-week high on Friday, supported by weaker yen and gains from Fast Retailing after jumping on strong third-quarter results.

Technology stocks also attracted buyers after tracking their counterparts in the US, which sent the Nasdaq index to a record high.

The Nikkei rose 1.9 percent to close at 22.597.35, its strongest close since June 21. The benchmark index rose 3.7 per cent in the week to a three-week losing streak. It was the biggest weekly gain since late March.

Rapid retail sales jumped 7.0 per cent after third-quarter operating profit rose 37 per cent to a record 68.4 billion yen on strong sales in UNIQLO's overseas stores. The stock added about 130 positive points to Nikkei.

However, the broader Topix index gained 1.2 per cent to 1,730.07. The Nikkei led the benchmark against Topix, its highest level since December 1998.

Analysts attributed the decline in the performance of Topix to large-cap banks where profits were reduced in the country's low-interest rate environment. They also said that Nikkei's large indexes, such as Fast Retailing Co and Softbank Group, tend to influence the direction of the benchmark index when there are specific corporate news.

Yutaka Miura, a senior technical analyst at Mizuho Securities, said the weakness of the yen also supported Nikki's performance over the past few days.

The dollar hit a six-month high of 112.775 yen and the latest trading at 112.66. The weakness of the yen tends to help Japanese exporters' earnings abroad when repatriated.

Yasqua Electric was volatile, falling 4.0 percent before rising to 3.7 percent in early trade, with results in March-May showing pros and cons.