Tokyo stocks rebounded Friday morning, driven by overnight gains on Wall Street amid growing expectations of a U.S. interest rate cut this year following data pointing to a slowing labor market.
The 225-issue Nikkei Stock Average rose 237.65 points, or 0.62 percent, from Thursday to 38,311.63. The broader Topix index was up 18.40 points, or 0.68 percent, at 2,731.86.
The U.S. dollar climbed to the upper 155 yen zone in Tokyo, as Japanese importers bought the currency for settlement purposes, dealers said.
At noon, the dollar fetched 155.74-77 yen compared with 155.42-52 yen in New York and 155.82-84 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.0773-0777 and 167.78-87 yen against $1.0776-0786 and 167.54-64 yen in New York and $1.0734-0735 and 167.26-30 yen in Tokyo late Thursday afternoon.
Stocks rose after the Nikkei benchmark lost over 750 points in the past two days of declines, with oil exploration firms and shippers rising notably on hopes that possible U.S. rate cuts later this year would spur economic growth and oil demand, brokers said.
The market was also buoyed by buying of shares in Japanese companies that announced upbeat earnings projections for the current fiscal year, including air conditioning maker Daikin Industries Ltd.
