Japanese stocks were higher in early trade at 0019 GMT following gains in U.S. technology stocks overnight. Electronics and bank stocks led the gains, with Mitsubishi Electric up 4.7% and Mizuho Financial Group up 3.6%. The dollar was at 160.22 yen, down sharply from 163.60 at Thursday’s Tokyo close. Investors are closely watching earnings, developments in the Middle East, and the Bank of Japan’s rate decision due later Friday.

Early trade momentum reflects optimism after U.S. tech stocks surged, lifting sentiment across Asian markets. The strong performance of Mitsubishi Electric and Mizuho Financial Group underscores a sectoral rally in electronics and banking. Meanwhile, the yen’s appreciation points to a tightening market.

With the Bank of Japan’s policy meeting scheduled for Friday, market participants remain alert to potential shifts in monetary policy that could further affect the Nikkei. The Nikkei Stock Average is up 2.7% at 63,549.20, marking a significant rebound amid global uncertainties.