Tokyo stocks rose on Tuesday morning after Wall Street gained overnight on hopes for sooner-than-expected interest rate cuts by the U.S. Federal Reserve and a weaker yen against the U.S. dollar lifted exporters.
The 225-issue Nikkei Stock Average climbed 452.59 points, or 1.18 percent, from Thursday to 38,688.66. Japanese financial markets were closed Friday and Monday for national holidays. The broader Topix index was up 7.66 points, or 0.28 percent, at 2,736.19.
The dollar strengthened to the mid-154 range on expectations that the differential between U.S. and Japanese interest rates will remain wide even if the Fed moves to reduce its benchmark rate later this year, dealers said.
At noon, the dollar fetched 154.55-56 yen compared with 153.84-94 yen in New York at 5 p.m. Monday.
The euro was quoted at $1.0762-0766 and 166.32-39 yen against $1.0764-0774 and 165.68-78 yen in New York late Monday afternoon.
Stocks rose after softer-than-expected U.S. labor market data released late last week eased concerns that the Fed will delay or forgo interest rate cuts this year amid persistent inflation, brokers said.
"A sense of relief spread in the market as fears faded that U.S. rate cuts will be delayed," said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
High-tech issues drew buying after U.S. counterparts gained on prospects of lower borrowing costs, while some auto and other export-related issues were lifted by the weaker yen, brokers said.
