Tokyo stocks advanced Thursday morning, as the market was lifted by strong technology shares following a record-high finish for the tech-heavy Nasdaq index in New York.

The 225-issue Nikkei Stock Average rose 351.58 points, or 0.91 percent, from Wednesday to 38,841.75. The broader Topix index was up 16.71 points, or 0.61 percent, at 2,764.93.

The U.S. dollar fell to the mid-155 yen range in the morning amid prospects of a narrowing of the U.S.-Japanese interest rate differential after weaker-than-expected U.S. private payrolls data on Wednesday increased expectations of Federal Reserve rate cuts later this year, dealers said.

At noon, the dollar fetched 155.64-67 yen compared with 156.06-16 yen in New York and 156.14-15 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0890-0894 and 169.49-59 yen against $1.0864-0874 and 169.67-77 yen in New York and $1.0871-0872 and 169.75-79 yen in Tokyo late Wednesday afternoon.

Shares were strong from the opening, with the Nikkei index briefly jumping over 500 points to top the 39,000 mark, before turning top-heavy toward the end of the morning session.

Heavyweight semiconductor-related issues, including Tokyo Electron and Advantest, also gained on reports that U.S. semiconductor giant Nvidia Corp.'s market valuation had hit the $3 trillion mark for the first time, making it the world's second-most valuable company, brokers said.

==Kyodo

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