TOKYO, Oct. 12 (Kyodo) - By: Yoshino Matsui The U.S. dollar remained bullish against the Japanese yen Friday in Tokyo, continuing an overnight trend overseas as players showed a muted response to a hijacking report from Nagoya that later turned out to be a false alarm. At 5 p.m., the dollar was quoted at 121.32-35 yen, almost unchanged from Thursday's 5 p.m. quote of 121.45-55 yen in New York. But the dollar jumped nearly 1 yen from the 120.38-41 yen level marked in Tokyo late Thursday. During the day, the dollar moved between 121.20 yen and 121.54 yen, trading most frequently at 121.33 yen. The U.S. currency surpassed 121.50 yen for the first time in Tokyo since last month's terror attacks. At 5 p.m., the euro traded at $0.9030-9033 and 109.57-61 yen compared with $0.9020-9030 and 109.60-70 yen at 5 p.m. Thursday in New York. Early in the afternoon, Nagoya airport authorities received a call warning that a Taliban-linked group would hijack a Northwest Airlines flight. But reports of the possible hijacking did not spur selling of the dollar, because as one dealer explained, "The market will not react instantly to such reports because there have been many unclear reports on terrorism recently." Police later said they believe the incident was a prank call and launched an investigation into the case. Also in the afternoon, Finance Minister Masajuro Shiokawa said in the Diet he told Prime Minister Junichiro Koizumi and Heizo Takenaka, minister in charge of economic and fiscal policy, in a meeting Wednesday night that, "It may be better for the yen to be somewhat weaker than now." The remark, broadcast live on television, briefly pushed the dollar up by 0.15-0.20 yen, dealers said. Tokyo and New York took over the dollar-bullish sentiment from London, where the dollar shot up against the yen Thursday on buybacks believed to have been made by U.S. hedge funds, dealers said. Thursday's hefty gains on Wall Street also supported the dollar. The Nasdaq composite index jumped 4.62% to 1,701.47, returning to its pre-Sept. 11 level and stirring expectations of an economic recovery in the U.S. The Nasdaq index closed at 1,695.38 on Sept. 10. Takayuki Togawa, a manager at Tokai Bank, attributed the firm performance on Wall Street to "a nascent belief that the air raid (in Afghanistan) is going to end soon." The United States bombed Afghanistan's ruling Taliban for the fifth straight day Thursday in retaliation for the Sept. 11 terror attacks on New York and Washington. Joseph Kraft, foreign exchange head at Morgan Stanley Japan Ltd., said speculations that the U.S. government will adopt a fiscal stimulus package of around $200 billion to cushion negative impacts on the economy from the terror attacks also gave support to the dollar. "If it is true, it would be the largest fiscal stimulus since World War II," he said.