Tokyo stocks were slightly higher Thursday morning, as buying of exporters on a weaker yen more than offset selling after Wall Street falls overnight.
The 225-issue Nikkei Stock Average rose 159.26 points, or 0.45 percent, from Wednesday to 35,637.01. The broader Topix index was up 5.75 points, or 0.23 percent, at 2,502.13.
The U.S. dollar remained firm around the 148 yen line in Tokyo, supported by receding expectations of a Federal Reserve interest rate cut as soon as March, following better-than-expected U.S. retail sales data for December, dealers said.
At noon, the dollar fetched 148.04-07 yen compared with 148.09-19 yen in New York and 147.87-88 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.0891-0895 and 161.24-31 yen against $1.0878-0888 and 161.23-33 yen in New York and $1.0869-0871 and 160.73-77 yen in Tokyo late Wednesday afternoon.
Stocks ended the morning up after directionless trading, as exporters were sought on prospects of improved earnings on a weaker yen, while selling was fueled by declines in U.S. shares amid concerns that borrowing costs could stay higher for longer.
On the Japanese market, investor sentiment was also lifted by government data on Wednesday that showed spending by inbound tourists to the country hit a record 5.29 trillion yen in 2023, analysts said.
Meanwhile, rises were limited by falls in overseas stocks including the Chinese market and persisting concerns the market is overheated, said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
"Even with the Nikkei coming off two days of falls, its earlier six-day, 2600-point rally means it could fall heavily even without a strong cue to sell," she said.
