The Nikkei index closed Friday at its highest level in around 33 years, boosted by hopes for a resolution to the U.S. debt ceiling issue and the yen's weakness that lifted exporter shares.

The 225-issue Nikkei Stock Average climbed 234.42 points, or 0.77 percent, from Thursday to 30,808.35, its highest finish since Aug. 1, 1990, when Japan was experiencing an asset price bubble.

The broader Topix index finished up 3.84 points, or 0.18 percent, at 2,161.69, its highest close since Aug. 3, 1990.

On the top-tier Prime Market, gainers were led by precision instrument, service and machinery issues.

The U.S. dollar fell slightly to the lower 138 yen level in Tokyo after hitting an around six-month high of 138.75 yen in New York overnight.

Dollar buying was fueled by lower-than-expected U.S. weekly initial jobless claims that stirred renewed speculation the Federal Reserve will continue its interest rate hike cycle, dealers said.

At 5 p.m., the U.S. dollar fetched 138.11-13 yen compared with 138.66-76 yen in New York and 137.81-83 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.0776-0778 and 148.83-87 yen against $1.0766-0776 and 149.33-43 yen in New York, and $1.0816-0817 and 149.06-10 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond rose 0.020 percentage point from Thursday's close to 0.400 percent, tracking a rise in U.S. long-term interest rates as fears of a possible default receded.

The Nikkei advanced for the seventh consecutive trading day, and the Topix index ended at a 33-year high for the fourth day in a row, following overnight rallies on Wall Street amid hopes that a deal on the debt ceiling to avert a default by the United States could be reached as early as next week, analysts said.

"The upward trend remained intact following U.S. share gains and the yen's depreciation," with Japanese stocks continuing to rise despite declines on Wall Street earlier this week, said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

Following the benchmark index's climb by more than 1,600 points over the past seven days, "Japanese stocks may drop next week, but they are likely to continue rising over the long term," helped by the weakening yen, Suzuki said.

A weak yen lifts shares of export-related firms, as it boosts their profits earned overseas when repatriated and increases the price competitiveness of Japan-made products abroad.

Export-oriented technology issues were also bought after the tech-heavy Nasdaq index climbed overnight to close at its highest level since August 2022.

Panasonic gained 39.5 yen, or 2.8 percent, to 1,464 yen, while Canon climbed 49 yen, or 1.5 percent, to 3,416 yen.

Ricoh soared 81 yen, or 7.7 percent, to 1,134 yen following news reports Thursday that it plans to integrate its office equipment operations with Toshiba Corp. and launch a new company in 2024.


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