Tokyo stocks close higher on Brexit stimulus hope

Tokyo stocks rose Friday on signs policymakers around the world are ready to shore up the global economy against the fallout from Britain's EU exit vote, with US economic data on tap for next week.

Britain's decision to depart the bloc after four decades sent shockwaves through global markets last Friday though they have since rebounded as hopes grow for measures to counter the negative effects.

Stocks in London, Paris, Frankfurt and New York on Thursday built on those gains after Bank of England chief Mark Carney said more stimulus would likely be needed to counter a Brexit-induced slowdown of the British economy.

In Tokyo, Japanese shares also rode the wave, as weak inflation and a lacklustre business confidence survey stirred hopes that the central bank would further loosen monetary policy at its meeting later this month.

"The mood for more easing is likely to spread around the world, and stock prices are headed up," Juichi Wako, a senior strategist with Nomura Securities, told Bloomberg News.

"It's not to say that the crisis has now turned into a blessing, but the heightened sense of urgency among authorities will allow market-favourable policy responses to continue."

Tokyo's benchmark Nikkei 225 index advanced 0.68 percent, or 106.56 points, to finish at 15,682.48. Over the week, the index rose 4.88 percent.

The broader Topix index of all first-section shares edged up 0.69 percent, or 8.62 points, to 1,254.44. Over the week the index advanced 4.15 percent.

Shortly before markets opened, official data showed spending by Japanese households fell in May while inflation dropped for a third straight month, dealing another blow to Tokyo's war on deflation.

The Bank of Japan's closely watched Tankan survey showed confidence among small firms and non-manufacturers worsened, while major manufacturers' sentiment was stuck at its lowest levels in more than three years ago.

Investors will be keeping watch on a string of US economic figures next week including on trade and employment.

Toyota gained 1.08 percent to close at 5,107 yen and rival Nissan rose 0.35 percent to 921.2 yen, while rival Honda slipped 0.21 percent to close at 2,567 yen.

Takata plunged 6.07 percent to 371 yen, after US auto safety regulators urged the owners of seven Honda and Acura models with especially defective airbags made by the auto parts giant to immediately have the cars fixed.

Takata-made airbag inflators in cars driven in humid regions are thought to be at a higher risk for a problem that can see drivers and passengers sprayed with shrapnel from the safety devices's inflator canister when it is deployed.

At least 13 people have died in accidents linked to the defect and scores more have been injured, sparking a massive global recall.

In forex trading, the dollar weakened to to 102.71 yen from 103.27 yen in New York.

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