The Nikkei stock index hit a fresh intraday record high Thursday morning, lifted by overnight gains on Wall Street after the Federal Reserve continued to signal three interest rate cuts ahead.
The 225-issue Nikkei Stock Average rose 666.92 points, or 1.67 percent, from Tuesday to 40,670.52. The broader Topix index was up 43.28 points, or 1.57 percent, at 2,794.25. Japanese financial markets were closed Wednesday for a national holiday.
The U.S. dollar briefly retreated to the lower 150 yen range after hitting a roughly four-month high of 151.82 yen in New York amid wariness that Japanese authorities could conduct a yen-buying market intervention to stem a further slide in the currency, dealers said.
At noon, the dollar fetched 150.48-51 yen compared with 151.19-29 yen in New York at 5 p.m. Wednesday.
The euro was quoted at $1.0934-0938 and 164.53-63 yen against $1.0917-0927 and 165.16-26 yen in New York on Wednesday.
A wide range of issues were bought from the outset, with the Nikkei benchmark hitting a new record high for the first time in two weeks, after the three key U.S. stock indexes all closed at record levels.
Sentiment was supported by the Fed maintaining its forecast of three interest rate cuts this year despite recent signs of resilient economic growth, analysts said.
"There had been some speculation that the Fed may reduce the number of rate cuts, but the fact that the bank largely didn't change its stance led to a sense of relief," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
