Nikkei rises as tech shares gain

Nikkei rises: Japan's Nikkei share average advanced on Friday after the Dow notched a record closing high overnight, with technology stocks leading the gains.

The Nikkei rose 0.58 per cent to 38,585.43 by the midday break, but was flat for the week. The broader Topix climbed 0.56 per cent to 2,708.08 and was up 0.3 per cent for the week.

"The Dow's strong finish lifted domestic equities. Chip-related stocks rose despite a decline of the Nasdaq, which means Nvidia is no longer a market-moving cue," said Naoki Fujiwara, senior general manager at Shinkin Asset Management.

The Dow posted a record-high close on Thursday in mixed trading following robust U.S. economic data, while artificial intelligence chipmaker Nvidia  dropped after its largely in-line forecast failed to impress investors. The Nasdaq slipped 0.23 per cent.

Nvidia's performance has been key for the Nikkei as most of its heavyweights are technology stocks.

Chip-testing equipment maker Advantest jumped 2.67 per cent to give the biggest boost to the Nikkei. Chip-making equipment maker Tokyo Electron 8035.T rose 0.57 per cent. Technology start-up investor SoftBank Group gained 2.5 per cent.

Medical equipment maker Terumo fell 2.9 per cent to weigh on the Nikkei the most, after news that its shareholders plan to sell 73.2 billion yen ($505.56 million) worth of shares to overseas investors.

Home interior goods retailer Nitori Holdings 9843.T, which relies on imports for most materials, fell 3 per cent to become the biggest percentage loser on the Nikkei after the yen weakened on Thursday. Nitori shares have risen 25 per cent so far this month, buoyed by a stronger yen. The Nikkei has declined 1.89 per cent during the same period.