Mumbai, Aug. 14 -- Japan's stock markets rose on Friday, with the Nikkei 225 gaining 0.59% to 68,714 and the Topix rising 0.51% to 4,197. Shares extended their rally, helped by strong gains on Wall Street and softer US inflation data, which reduced expectations of a September Federal Reserve rate hike.

Markets now see about a 35% chance of a 25-basis-point Fed rate hike in September, down from 55% a week earlier. At home, investors are also watching for a possible Bank of Japan rate hike in September or October, as a weaker yen could add to inflation.

Technology stocks led the gains, supported by renewed interest in artificial intelligence. Kioxia Holdings rose 3.8%, Advantest gained 2.6%, and SoftBank Group climbed 2.9%.

For the week,...