The Nikkei stock index jumped over 2 percent Wednesday, boosted by technology shares on hopes for upbeat earnings from U.S. companies, with sentiment further lifted by advances on other Asian markets.
The 225-issue Nikkei Stock Average ended up 907.92 points, or 2.42 percent, from Tuesday at 38,460.08. The broader Topix index finished 44.50 points, or 1.67 percent, higher at 2,710.73.
On the top-tier Prime Market, gainers were led by precision instrument, electric appliance and transportation equipment issues.
The U.S. dollar climbed to a new 34-year high of 154.98 yen in Tokyo, as recent strong U.S. economic data has reduced expectations that the Federal Reserve will soon cut interest rates. But the U.S. currency stayed under the psychologically important 155 yen line amid wariness of a possible currency intervention by Japanese authorities.
At 5 p.m., the dollar fetched 154.89-91 yen compared with 154.78-88 yen in New York and 154.81-82 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.0687-0689 and 165.54-58 yen against $1.0698-0708 and 165.62-72 yen in New York and $1.0676-0678 and 165.28-32 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond briefly rose to 0.890 percent, the highest level in about five months. It ended at 0.885 percent, a rise of 0.005 percentage point from Tuesday's close.
The debt was sold, sending yields higher, tracking a rise in U.S. long-term treasury yields during after-hours trading.
Stocks rose for the third straight day, as heavyweight high-tech issues were bought after their U.S. counterparts gained overnight and positive earnings results were released by some of such companies, helping the Nikkei benchmark recover the 38,000 line.
The index advanced further in the afternoon, supported by gains on other Asian markets and U.S. technology futures.
"A big influence today was strong earnings results from U.S. technology firms, which are brewing up expectations for releases to come from major firms such as Meta Platforms Inc. this evening," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
Export-related auto and machinery issues also climbed sharply, as active buying of technology shares helped improve overall sentiment, he said.
Market participants are now focusing on major events this week, including U.S. gross domestic product data Thursday and the Bank of Japan's two-day policy meeting to be concluded Friday, analysts said.
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