Japan's Nikkei 225 index rose in early trading Friday, breaking through key levels to reach new highs。This suggests that investors are confident that the Bank of Japan will remain supportive in the short term.。

The Nikkei 225 rose as much as 1 percent to a new all-time high of 41,133 before giving back some of its gains。Broader TOPIX Index Up 0.5%, a record high。

Japanese stocks have rallied since Tuesday after the Bank of Japan said it would keep monetary conditions generally accommodative in the short term despite raising interest rates to their highest level in nearly 17 years and ending most of its asset-buying program.。On Thursday, the dollar again breached the 151 mark against the yen。

Weaker yen drives growth in Nikkei's most export-oriented sectors。

Sharp emerged as the Nikkei's biggest gainer on reports that the company is preparing to reduce its lagging LCD business, with shares up 6.4%。Shares of Nissan Motor, Suzuki Motor and Honda Motor all rose more than 3 percent as global risk appetite strengthened and the yen weakened by the Bank of Japan's expectations for the short-term outlook.。

However, Citi analysts noted in a recent report that while the Nikkei is expected to rise rapidly to 41,000 after the BoJ announcement, it is unlikely to exceed that level.。

Citi analysts expect the Nikkei to oscillate around current levels if Japan's monetary policy tightens later this year。

February's strong consumer price index data provided the basis for the BoJ's shift as inflation rebounded and exceeded the central bank's annual 2 percent target.。