There was little movement in the yen on currency markets as the BoJ said its earlier view that Japan's prospects were improving remained on course.

"Japan's economy is recovering moderately," the BoJ said in a statement, adding that economies overseas "as a whole are gradually heading toward a pick-up".

The brighter global outlook as well as an ongoing weakening of the yen has helped boost Japan's shipments to key markets.

The weaker currency came as Tokyo unleashed a fresh bid to stoke the long-lumbering economy with big government spending and massive central bank monetary easing.

On Thursday, the BoJ said key indicators including business investment and consumer demand were looking brighter, a good sign as Japanese officials work to vanquish years of deflation that has curbed growth.

The BoJ said earlier this year it was aiming to hit a two-percent inflation target in as many years, but some analysts doubt the ambitious timeline given that recent price rises have been largely tied to Japan's soaring energy costs caused by the weaker yen.

AFP