The Nikkei stock index jumped over 2 percent Wednesday, boosted by technology shares on hopes for upbeat earnings from U.S. companies, with sentiment further lifted by advances on other Asian markets.
The 225-issue Nikkei Stock Average ended up 907.92 points, or 2.42 percent, from Tuesday at 38,460.08. The broader Topix index finished 44.50 points, or 1.67 percent, higher at 2,710.73.
On the top-tier Prime Market, gainers were led by precision instrument, electric appliance and transportation equipment issues.
The U.S. dollar climbed to a 34-year high around 154.94 yen in Tokyo, as recent strong U.S. economic data have reduced expectations that the Federal Reserve will soon cut interest rates.
Stocks rose for the third straight day, as heavyweight high-tech issues were bought after their U.S. counterparts rose overnight and positive earnings results were released by some of such companies, helping the Nikkei benchmark recover the 38,000 line.
The index advanced further in the afternoon, supported by gains on other Asian markets and U.S. technology futures.
"A big influence today was strong earnings results from U.S. technology firms, which are brewing up expectations for releases to come from major firms such as Meta Platforms Inc. this evening," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
Export-related auto and machinery issues also climbed sharply, as active buying of technology shares helped improve overall sentiment, he said.
Market participants are now focusing on major events this week, including U.S. gross domestic product data Thursday and the Bank of Japan's two-day policy meeting to be concluded Friday, analysts said.
