Japanese stocks rebound on strong tech sentiment

Japanese stocks recovered on Friday, supported by a strong Wall Street lead after Nvidia's upbeat sales outlook boosted confidence in AI-related demand.

The Nikkei 225 rose 0.41% to 66,405, while the broader Topix gained 0.72% to 4,147. Japan's unemployment rate fell to 2.4% in July, its lowest level in a year, while Tokyo's inflation rate picked up to a five-month high in August.

Technology and electronics stocks led the gains, with Advantest up 1.9% and Taiyo Yuden rising 3.9%. Terra Drone jumped 12.4%.

Elsewhere, Mizuho Bank started legal action against iron ore trader Radiant World over alleged falsified documents used to obtain financing. Toyota also faced pressure as vehicle sales fell for a sixth straight month, with higher gasoline prices hurting demand for non-electric vehicles in China.