Japan’s Nikkei share average experienced an increase on Friday, primarily driven by technology stocks. However, the extent of the gains was limited due to ongoing concerns regarding inflation and the uncertainty surrounding the potential signals from Federal Reserve Chair Kevin Warsh’s upcoming speech at Jackson Hole. The Nikkei rose 0.4% to close at 66,405.56. Chip-testing equipment heavyweight Advantest advanced 1.9%, serving as the index’s most significant support, while online staffing agency Recruit experienced a climb of 4.9%. Security software firm Trend Micro experienced a notable increase of 5.9%, positioning it as the largest percentage gainer on the Nikkei.

Among the 225 components of the index, 146 experienced an increase, while 74 saw a decline, and five remained unchanged. The broader Topix increased by 0.7%, reaching a level of 4,146.71. For the week, the Nikkei experienced an increase of 0.6%, whereas the Topix saw a rise of approximately 2%. Japanese tech stocks received a boost from the performance of Wall Street counterparts overnight, as evidenced by the Philadelphia SE semiconductor index’s 2.3% rally on Thursday. However, sentiment was tempered by increasing bond yields as oil prices edged upward amidst ongoing uncertainty in the Middle East. Data on Friday indicated that inflationary pressures are rising in Tokyo, strengthening the argument for an interest rate increase by the Bank of Japan.

Warsh is scheduled to address the audience later today at the Federal Reserve’s annual symposium in Jackson Hole. Three Fed officials have already expressed concerns regarding persistent inflation; however, the new central bank chief has refrained from offering any forward guidance on the trajectory of interest rates. “There’s a wait-and-see attitude in the Japanese stock market ahead of Warsh’s Jackson Hole speech, with investors wanting to hear what he has to say before making investment decisions,” which kept trading relatively subdued, said Maki Sawada.