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Japan's Nikkei share average edged up on Friday in choppy trade, in reach of posting its best daily winning streak in more than five decades, as a weaker yen helped stocks pare earlier losses.
During Asian trade, the dollar soared 0.5 per cent to 113.09 yen after news that the US Senate had voted on Thursday to approve a budget blueprint for the 2018 fiscal year. This could pave the way for Republicans to pursue a tax-cut package without Democratic support.
The Nikkei opened 0.3 per cent lower but trimmed its earlier losses. At 0207 GMT, it was up 0.2 per cent at 21,483.92, heading for 14 straight days of gains. That would mark the longest daily winning streak since 1961. For the week, it has gained 1.5 per cent, on track to post six straight weekly gains, the longest weekly winning streak in a year.
The Nikkei had added more than 5 per cent over the past 13 days supported by hopes that Japanese Prime Minister Shinzo Abe's ruling coalition will win the general election on October 22.
Traders said that the market is prone to profit-taking before the election, but the weaker yen, which helps export competitiveness, raised investors' risk appetite on Friday.
“People were prepared to sell Japanese stocks on profit-taking, but now that there are expectations that U.S. stocks will rise later in the day, they don't want to sell," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
“Stocks are pulled by those who want to take profits and those who want to chase the market higher.”
Apple suppliers' shares were sold after Apple Inc stumbled overnight as doubts about its double 2017 iPhone release strategy weighed on investor minds.
Murata Manufacturing Co dropped 1.7 per cent, Alps Electric tumbled 2.5 per cent and Foster Electric shed 2.4 per cent. Food stocks gained ground, with NH Foods rising 1.4 per cent and Nippon Suisan gaining 2.3 per cent.
Exporters, which rose recently, were mixed as some investors took profits. Toyota Motor Corp gained 0.2 per cent, Honda Motor Co dropped 0.7 per cent, while Hitachi added 0.2 per cent.
The broader Topix was flat at 1,730.58.
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