Japanese stocks edged higher Friday, bouncing back from early losses on gains led by the electronics, retail and glass sectors. The dollar was higher against the yen. The benchmark Nikkei 225 index rose 2.84 points, or 0.02 percent, to finish at 16,428.21 points on the Tokyo Stock Exchange. It gained 63.83 points, or 0.39 percent, on Thursday to finish at 16,425.37 -- the Nikkei's highest closing since Sept. 20, 2000. Prices initially fell as players pocketed profits from gains in the past two straight sessions ahead of a long weekend. Japanese financial markets will be closed Monday for the Coming of Age national holiday. Ordinary trading resumes on Tuesday. But the market later reversed the course as investors turned upbeat about Japan's economy and Wall Street's overnight gains. The government has forecast that the economy would pull out of deflation this year, halting the spiral of falling prices that has undercut corporate profits, harmed wages and prolonged the nation's economic slump.