Tokyo's Nikkei 225 index gained 0.3% to 40,074.87 after the central bank raised its benchmark rate to about 0.5% from 0.25%, as widely expected. It is the highest level for the rate since 2008, as the Bank of Japan shifts out of a long spell of extreme low interest rates meant to spur more borrowing and spending.

World shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate.

Japan's central bank raised interest rates to their highest since the 2008 global financial crisis and revised up its inflation forecasts.