Nikkei adds 0.18 pct on hopes for central banks, U.S. jobs data

The Nikkei stock index added 0.18 percent on Friday as investors remained confident that central banks around the world will continue to underpin markets, but profit taking here in later trade on concerns of continued swings in oil prices and ahead of key U.S. jobs data, coupled with a comparatively firm yen, ensured gains were capped.

The Nikkei 225 added 30.63 points to close the week at 17,197. 73, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 2.91 points, or 0.21 percent, to finish at 1,380.58.

Traders here said that a letter written by European Central Bank (ECB) President Mario Draghi suggesting that his policymakers would, if necessary, unroll new stimulus measures including buying sovereign bonds, in a bid to stem the fall of prices in the region, was well received by global markets ahead of elections in Greece later this month.

Brokers said that investors continued to rely on the central banks' aggressive measures to underpin economies with the U.S. maintaining its interest rates, Japan boosting its asset purchasing program and the ECB looking to buy bonds.

"America hasn't begun raising interest rates yet, and as long as Japan and the ECB keep answering the market's strong desire for stimulus and flooding it with money, the outlook for financial markets should continue to be strong. However, there's a limit to that. At some point the focus will eventually shift to earnings," said Ayako Sera, market strategist at Sumitomo Mitsui Trust.

Airlines came under pressure on the last trading day of the week and Japan Airlines Co. dropped 1.8 percent to 3,755 yen, while ANA Holdings Inc. lost 0.9 percent to end at 301 yen. Skymark Airlines Inc., for its part, tumbled 5.6 percent to finish at 357 yen.

Export and tech-related issues also lost ground on the euro's slump versus its major counterparts and Mazda reversed 4.2 percent to 2,620 yen, with JPMorgan also cutting its target price on the automaker's stock to 2,850 yen from 3,000 yen. JPMorgan noted Mazda would likely be facing weaker emerging market currencies and increased competition, particularly from U.S. sedans.

Electronic parts maker Rohm closed in positive territory, however, climbing 3.9 percent to close the week at 7,480 yen after Credit Suisse predicted the firm would return to profit once its shifted some its resources to overseas clientele.

Among retail issues, owner and operator of the Uniqlo chain of high street apparel stores Fast Retailing gained 0.8 percent to 44, 760 yen, following the firm announcing its quarterly net income had leapt 64 percent from a year earlier to 576 million U.S. dollars -- ahead of median analysts' estimations. Fast Retailing officials said that a combination of a weak yen, increasing overseas sales and cold weather, had contributed to the increase.

Matsuya, a department store chain, meanwhile, climbed 6.4 percent to 1,640 yen on Friday, following the firm announcing its net profit in the nine months through November had gained 40.1 percent.

Trading volume on Friday rose to 2.50 billion shares on the Tokyo Exchange's First Section, up from Thursday's volume of 2.47 billion shares, with declining issues outnumbering advancing ones by 986 to 728. Endi