Markets benefited from a rebound in tech shares, while also seeing some bargain buying after logging deep losses over the past week

Most Asian stocks rose on Friday, buoyed by a rebound in technology shares from bruising losses over the past week, while markets showed limited reaction to an in-line rate hike by the Bank of Japan.

Japanese markets slightly trimmed their gains after the BOJ’s decision, but continued to outpace their peers for the day. But the Nikkei 225, along with most major Asian bourses, was nursing steep losses for the week.

Nikkei 225 index gained 1%, slightly trimming gains but still leading gains across Asian markets, while the broader TOPIX index rose 0.9%.

Markets benefited from a rebound in tech shares, while also seeing some bargain buying after logging deep losses over the past week. The Nikkei was nursing a 2.6% decline this week.

The BOJ raised interest rates by 25 basis points as expected, and said it had room to hike rates further if the economy and inflation picked up in line with its forecasts.

The hike was widely expected by markets, given that Japanese inflation steadily rose this year, while the yen stayed near multi-year lows.

CPI data released earlier on Friday showed inflation remained sticky and above the BOJ’s 2% annual target in November, reinforcing bets on a hike.

Beyond the hike, markets will be closely watching for any hawkish commentary from Governor Kazuo Ueda, who is set to speak at a press conference scheduled for 06:30 GMT.

Broader Asian markets gained on Friday, benefiting from a recovery in tech shares as investors bought back into the battered sector.

KOSPI rose 0.8% on Friday, but was the worst performer in Asia this week, down nearly 4% on a wipeout in tech valuations.

Hang Seng added 0.6% and was down 1.5% this week.

Indexes with relatively smaller tech valuations clocked smaller losses this week. Shanghai Shenzhen CSI 300 and Shanghai Composite indexes advanced 0.6% apiece on Friday, and traded flat for the week.

ASX 200 added 0.5% and was trading mildly lower for the week, while Singapore’s Straits Times index was flat.