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* Market relieved after BOJ decision offers no surprise
* Nikkei falls 0.4 pct for the week
* Trade active due to index rebalancing
* Takata's trade suspended by bourse throughout the day
By Ayai Tomisawa
TOKYO, June 16 (Reuters) - Japan's Nikkei share average rose to a one-week closing high on Friday as the yen dropped, after an expected policy decision by the Bank of Japan provided relief to investors.
The Nikkei gained 0.6 percent to 19,943.26, its highest close since June 9. The benchmark fell 0.4 percent for the week.
On Friday, traders said that the rebalancing of the FTSE World index lifted trading activity in the market, with 2.28 billion shares changing hands on the broader market, the highest since June 2. Turnover hit a one-week high of 3.19 trillion yen ($28.67 billion).
The broader Topix gained 0.5 percent to 1,596.04.
The dollar ticked up to a session high of 111.27 yen, its highest since June 2, helping overall sentiment after the BOJ kept monetary policy steady as expected.
The BOJ also left unchanged a loose pledge to keep increasing bond holdings at an annual pace of 80 trillion yen ($729 billion).
It upgraded its assessment of private consumption and overseas growth, signalling confidence that an export-driven economic recovery was broadening and gaining momentum.
Investors concerned whether the BOJ would communicate its exit strategy without causing market turmoil took solace from the fact that its announcement made no mention of exiting from the ultra-loose policy, traders said.
"The market was relieved that there was no mention of an exit strategy, at least for now," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.
Friday's notable gainers were financial stocks, with Mitsubishi UFJ Financial Group rising 1.1 percent, Nomura Holdings climbing 2.9 percent and insurer T&D Holdings advancing 0.9 percent.
Tech shares underperformed, hit by weakness in U.S. counterparts. Tokyo Electron shed 1.1 percent, TDK Corp fell 0.4 percent, while Sharp Corp declined 0.5 percent.
Trading in Takata Corp was suspended throughout the day because the company offered no official statement after sources said the company was preparing to file for bankruptcy as early as next week.
Takata is working toward a deal for financial backing from U.S. auto parts maker Key Safety Systems Inc.
$1 = 111.2500 yen Editing by Clarence Fernandez