The Nikkei 225 Index jumped 1.7% to above 69,400, while the broader Topix Index gained 0.5% to 4,196 on Friday, with Japanese shares extending their rally and following a strong lead from Wall Street as subdued US inflation data prompted traders to scale back expectations for a Federal Reserve rate hike in September. Markets are now pricing in around a 35% chance of a 25 basis point Fed rate hike in September, down from 55% a week earlier. Domestically, investors are speculating about a possible Bank of Japan rate hike in September or October amid concerns that a weak yen could add to inflationary pressures. Technology stocks led the gains, including Kioxia Holdings (5.2%), Advantest (5.1%) and SoftBank Group (5.5%). The Nikkei and Topix are on track to rise 6% and 3.5% for the week, respectively.