Nikkei at fresh five-week high above 10,000
Japan's 225-issue Nikkei Stock Average edged up 0.45 percent, with the key index rising above the 10,000 for the first time in five weeks on Friday.
Buy orders from foreign investors as the yen retreated further against the dollar, and fiscal stimulus initiatives by Japan's central bank to tackle deflation lifted the market to it's highest level since Oct. 30.
Japan's key benchmark Nikkei added 44.92 points to 10,022.59.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange crept up 0.2 percent to 889.58.
In an emergency meeting held on Tuesday the Bank of Japan (BOJ) announced it would offer about 10 trillion yen (114 billion U.S. dollars) in short-term loans to commercial banks to boost liquidity, whilst maintaining its key interest rate at a super-low0.1 percent.
"The Nikkei's recovery to the 10,000 level was due largely to the steps announced by the Bank of Japan earlier this week," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
"A short-cover rally, which was supported by foreign investors who were relieved to see Japan's economic measures, may have come to an end," said Kenichi Hirano, operating officer at Tachibana Securities.
"For further gains, investors need to see more clarity about Japan's economic policies, along with U.S. jobs data that could still surprise the market."
Pressure on exporters was eased on Friday with the dollar trading in the lower 88-yen range, up almost 4 yen from a 14-year low a week previously.
Sony Corp. rose 1.41 percent to 2,510 yen as the electronics maker saw "very positive signs" for sales of TVs, personal computers, PlayStation 3 game consoles and Blu-ray discs during the Thanksgiving week in the U.S., according to a statement by Chairman Howard Stringer to the press on Thursday.
"With heavy net buy orders from foreign investors before the opening and the dollar exchange rate in the 88-yen level, investors moved to test the market high," said Yumi Nishimura, a senior equity market analyst at Daiwa Securities SMBC Co.
However as exporters gained Japanese retailers lost ground on Friday, as a weaker yen raises their import costs.
Convenience store chain Family Mart Co. who recently announced their plans to buyout smaller rival am/pm Japan Co. and turn it into a subsidiary, lost 55 yen per share to 2,840 yen, while Seven& I Holdings Co. Ltd. closed trade flat.
Department store operator Marui Group Co. Ltd. shed 0.93 percent to 529 yen and Isetan Mitsukoshi Holdings Ltd. dropped 2.56 percent to 780 yen.
Brokers described trade as "directionless" on Friday as there were a lack of domestic cues and traders and investors took a cautious stance ahead of key U.S. job data, due out on Friday.
The non-farm payrolls report due Friday may show that economic recovery in the U.S. is sluggish, although the unemployment rate for November is expected to remain unchanged at 10.2 percent, according to sources close to the matter.
Trade was active on the Tokyo exchange's First section, with some 2.3 billion shares changing hands, compared with last week's daily average of around 2 billion.
Declining shares outnumbered advancing ones by 1,037 to 523.