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Hong Kong - Asian markets mostly fell on Friday on concerns over the US economy, but Tokyo hit highs not seen in nearly five years as the yen slumped after the Bank of Japan surprised investors with a vast plan to boost the economy.
Japan's Nikkei jumped 3.76% by the break - its highest since August 2008 before the global financial crisis hit markets - a day after the BoJ's stimulus targeting deflation.
However, other regional markets struggled as jitters set in over the US economy and tensions on the Korean peninsula, with Hong Kong off 2.09%, Seoul down 1.71%, Sydney losing 0.49% and Shanghai off 0.11%.
In the first meeting under new governor Haruhiko Kuroda, the BoJ announced a doubling of the money supply and aggressively increased asset purchases, while vowing no let-up in the battle against falling prices.
The move immediately sent the yen diving and exporters soaring, lighting a fire under the Nikkei. Investors continued the trend on Friday.
"Foreign investors now have no choice but to buy Japanese stocks," said Kenichi Hirano, market analyst at Tachibana Securities.
In Tokyo forex trade, the dollar rose to ¥97.04 - its highest since August 2009 - from ¥96.33 on Thursday in New York and way up from ¥92.71 before the BoJ measures were unveiled.
The euro bought ¥125.20 from ¥124.60 in New York and from ¥119.66 ahead of the announcement. The euro fetched $1.2924, compared with $1.2934.
While Japanese investors enjoyed a bumper session, the rest of Asia was grappling with a weak set of US data.
The Dow rose 0.38%, the S&P 500 added 0.40% and the Nasdaq climbed 0.20% but gains were capped by a disappointing report on US jobless claims, which unexpectedly rose 28 000 to 385 000 for the week ending March 30.
Those figures come as markets nervously await the release of key non-farm payrolls data later in the day, with expectations low after huge federal spending cuts came into force at the beginning of last month.
"Given that the US jobless claims data underwhelmed, there is concern the non-farm payrolls will follow suit, and add to the recent run of bearish signals," William Leys, Sales Trader at CMC Markets wrote in a note to clients.
"If this does occur, another sell-off is on the cards," he said, according to Dow Jones Newswires.
"On the other hand, a positive report may lead to a bounce against the recent downtrend and provide some welcome relief for equities across the board."
Adding to regional selling pressure is news that the United States said it was taking "all necessary precautions" after North Korea moved a medium-range missile to its east coast.
It was the latest move by Pyongyang which has issued a series of threats of nuclear war in recent weeks in response to UN sanctions and South Korea-US military drills.
Oil prices rose, with New York's main contract, light sweet crude for delivery in May adding 21 cents to $93.47 a barrel and Brent North Sea crude for May delivery increasing 22 cents to $106.56.
Gold was at $1 551.40 an ounce at 03:20 GMT compared with $1 544.90 late on Thursday.
