Japanese stocks close higher after two sessions of decline.

Japanese stock indices closed higher on Friday, as technology and chip stocks boosted the profits of Japanese stock market indices following the gains on Wall Street yesterday.

In terms of trading, the Nikkei 225 index NIKKEI closed up 0.68% at 38,283.85 points, but it dropped 1.6% over the week. Meanwhile, the broader Topix index .TOPX rose 0.51% to close at 2,696.53 points, but also recorded a weekly loss of 1.06%.

This came after major stock indices on Wall Street closed higher following a volatile session on Thursday, with the Dow Jones and the S&P 500 reaching their respective highest levels in a week. Nvidia's shares rose by 0.5% after fluctuating following the earnings announcement on Wednesday, and the U.S. semiconductor sector index increased by 1.6%.

In the Nikkei index, 148 stocks rose among the 225 stocks listed, while 74 stocks declined and 3 stocks remained stable. Chip stocks led the gains, with Tokyo Electron shares rising by 2.16%, Advantest shares increasing by 0.66%, while Renesas shares jumped by 4.66%.

As for sector indices, 28 of the 33 sector indices on the Tokyo Stock Exchange rose, while 5 sectors saw declines. Refining sector stocks were the best performers, increasing by 2.79%, while automotive sector stocks fell by 0.15%, with Toyota Motor shares, the heaviest in the Topix index, losing 0.37%. Additionally, the pharmaceutical sector index dropped by 0.43%, as Daiichi Sankyo shares decreased by 1.07%.