Tokyo stocks advanced Wednesday morning as investors bought semiconductor and other technology shares after gains in their U.S. counterparts overnight.
The 225-issue Nikkei Stock Average rose 553.24 points, or 1.41 percent, from Tuesday to 39,726.39. The broader Topix index was up 17.76 points, or 0.64 percent, at 2,805.13.
On the top-tier Prime Market, gainers were led by electric appliance, securities house and pharmaceutical issues.
The U.S. dollar was firmer in the upper 159 yen range following a rise in U.S. long-term interest rates on receding prospects of interest rate cuts after a Federal Reserve official said the bank's policy rate is likely to stay unchanged for a while.
But the currency stayed below the 160 yen threshold amid wariness over a possible yen-buying intervention by Japan, the dealers said.
At noon, the dollar fetched 159.83-84 yen compared with 159.61-71 yen in New York and 159.48-50 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0708-0712 and 171.15-22 yen against $1.0709-0719 and 170.98-171.08 yen in New York and $1.0726-0727 and 171.06-10 yen in Tokyo late Tuesday afternoon.
Stocks were lifted by heavyweight tech-related issues such as Tokyo Electron and Advantest after the U.S. Nasdaq index snapped a three-day losing streak.
"Buying spread to semiconductor stocks, driven by the strong performance of their U.S. peers overnight, particularly the rebound of Nvidia shares after a steep sell-off," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
