Tokyo stocks were mixed Tuesday morning as investors looked for bargains including chip-related issues following the Nikkei's fall the previous day, while others traded cautiously due to wariness over possible government intervention in the currency market to stem the yen's decline.
The 225-issue Nikkei Stock Average rose 50.11 points, or 0.13 percent, from Monday to 39,853.20. The broader Topix index was down 5.43 points, or 0.20 percent, at 2,715.79.
The U.S. dollar edged up in the upper 151 yen range on U.S. yield rises overnight as stronger-than-expected U.S. March manufacturing data reinforced the view that the Federal Reserve will delay interest rate cuts longer than expected.
At noon, the dollar fetched 151.67-70 yen compared with 151.59-69 yen in New York and 151.34-35 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0733-0737 and 162.79-88 yen against $1.0737-0747 and 162.82-92 yen in New York and $1.0785-0787 and 163.23-27 yen in Tokyo late Monday afternoon.
The Nikkei index bounced back from a two-week low logged on Monday, led by semiconductor-related issues tracking overnight rises in the technology-heavy U.S. Nasdaq index, brokers said.
However, the market's upward momentum was tempered, with the Nikkei giving up most of its early gains as concerns grew about possible yen-buying intervention by the Japanese government, the brokers added.
"Investors were wary of the yen's depreciation" as government intervention could reverse the currency's recent declining trend and "potentially cause the Nikkei to fall," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Finance Minister Shunichi Suzuki said last week Japan would take "decisive steps" to stem excessive weakness in the yen.
