The Nikkei 225 Index increased by 0.9% to surpass 64,600 on Friday, marking its third consecutive session of gains following the Bank of Japan’s decision to raise its policy rate by 25 basis points to 1.25%, a move that was anticipated by market participants.

Investors will now seek direction regarding the potential for additional tightening as policymakers contend with persistent inflation and wage growth, alongside pressure from US Treasury Secretary Scott Bessent. Meanwhile, Japan’s annual inflation rate remained unchanged at 1.9% in August, while core inflation continued to fall short of the BOJ’s 2% target for the seventh consecutive month at 1.7%.

Technology and AI-related stocks experienced notable gains, mirroring the advances observed on Wall Street overnight, as apprehensions regarding the safety risks associated with AI development diminished. Notable performers included Kioxia at 3.2%, SoftBank Group at 4.1%, Advantest at 4%, Lasertec at 5.5%, and Ibiden Co at 3.3%.