Nikkei 225 surged 1.6%, the TOPIX gained 1.3%, Hang Seng index shed 0.7%, Straits Times index slid 0.3%, while Australia’s ASX 200 gained 0.4%

Asian stocks were mixed on Friday amid market holidays and a decline in technology shares, while Japanese markets rallied to near record highs before a key ruling party vote that will decide the country’s next Prime Minister.

Japanese markets were encouraged by Bank of Japan Governor Kazuo Ueda flagging caution over the economy and trade, which presented a less hawkish outlook for the central bank.

Hong Kong stocks, on the other hand, were hit by sharp losses in electric vehicle stocks. Broader tech stocks also faced some profit-taking after strong gains this week.

Asian trading volumes were muted on Friday amid market holidays in China and South Korea. Chinese markets will remain closed until the middle of next week.

Nikkei 225 surged 1.6% and was near recent peaks, while the TOPIX gained 1.3%.

Markets were encouraged by the BOJ’s Ueda flagging some caution over the Japanese economy.

While Ueda did reiterate the BOJ’s stance that interest rates will rise if the economy firms and inflation increases, he flagged increased uncertainties around Japan’s economic outlook. Ueda’s comments suggested an air of caution over the economy, which could deter the central bank from raising interest rates immediately.

Focus in Japan was squarely on a key Liberal Democratic Party vote to be held over the weekend, which will decide the party’s leader and the next Prime Minister of Japan.

The vote comes after Prime Minister Shigeru Ishiba abruptly resigned in September, with markets now looking to a less fiscally conservative successor.

Hang Seng index shed 0.7%, hit by losses in electric vehicle stocks.

Heavyweight Hong Kong tech stocks also dipped on Friday after strong gains earlier this week.

Broader Asian markets were mixed, with Straits Times index sliding 0.3%, while Australia’s ASX 200 gained 0.4%.