Tokyo stocks ended mixed Thursday, as buying of tech shares erased earlier losses related to concerns over political uncertainty in Europe.
The 225-issue Nikkei Stock Average ended up 62.26 points, or 0.16 percent, from Wednesday at 38,633.02. The broader Topix index finished 3.10 points, or 0.11 percent, lower at 2,725.54.
On the top-tier Prime Market, gainers were led by air transportation and mining issues, while top decliners were marine transportation and securities house issues.
The U.S. dollar strengthened to the lower 158 yen range in Tokyo on prospects that the interest rate differential between Japan and the United States will remain wide for a while.
U.S. financial markets were closed Wednesday for a public holiday.
Stocks fell in the morning after some European shares dropped amid concerns about political uncertainty in France, with the far-right National Rally projected to gain momentum in an upcoming snap election.
Uncertainties over how much the Bank of Japan will decide to cut future bond purchases at its July policy meeting also made investors reluctant to buy stocks, analysts said.
But the Nikkei benchmark staged a recovery into positive territory in the afternoon as heavyweight semiconductor-related issues were sought, tracking a rise in U.S. tech futures.
"Stocks were top-heavy but the downside was also limited, as the market had little trading incentives," said Kazuo Kamitani, a strategist in the investment content department of Nomura Securities Co.
It is increasingly thought that the market may not pick up until the earnings report season begins in late July in Japan amid the political uncertainty in Europe, he added.
