Tokyo stocks rise on hopes of easing U.S.-China trade tensions

Tokyo stocks rose Thursday morning on buying spurred by growing optimism that trade tensions between the United States and China will ease.

The 225-issue Nikkei Stock Average rose 375.78 points, or 1.08 percent, from Wednesday to 35,244.41. The broader Topix index was up 26.12 points, or 1.01 percent, at 2,610.44.

The U.S. dollar fell to the upper 142 yen range in Tokyo, but stayed relatively firm after rising to around the mid-143 yen level in New York as U.S. Treasury Secretary Scott Bessent said the United States is not targeting specific currency levels in trade negotiations with Japan.

The market has been wary that the U.S. administration would bring up exchange rates with the Japanese finance minister on Thursday, given that President Donald Trump has accused Japan of devaluing its currency.

At noon, the dollar fetched 142.78-79 yen compared with 143.42-52 yen in New York and 141.86-88 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.1355-1359 and 162.13-20 yen against $1.1308-1318 and 162.29-39 yen in New York and $1.1385-1386 and 161.51-55 yen in Tokyo late Wednesday afternoon.

Stocks tracked overnight gains on Wall Street after a report said the U.S. administration is considering reducing tariffs on Chinese imports.

The market was also lifted by heavyweight chip issues following advances by their U.S. counterparts, while export-oriented auto and electronics shares climbed on a weaker yen, which increases overseas profits of exporters when repatriated.