/www.fxserver.com/TOKYO (AP) -- Stocks in Tokyo rebounded Thursday in morning trading after hitting near 20-year lows for two consecutive days. The dollar was higher against the yen.
The benchmark 225-issue Nikkei Stock Average was up 121.77 points, or 1.34 percent, to 9,196.86 at the close of Thursday morning trading. On Wednesday, the Nikkei ended down 141.95 points, or 1.54 percent, at 9,075.09 -- its lowest finish since Sept. 17, 1983, when it closed at 9,010.08.
The U.S. dollar was trading at 118.06 yen on the Tokyo foreign exchange market at 11 a.m. Thursday, up 0.44 from late Wednesday in Tokyo, and above its late New York level of 118.02 yen.
Overnight in New York, buyers returned to the market, sending stocks sharply higher following five days of selling. While the Dow Jones industrials climbed more than 100 points, analysts were reluctant to call the performance a rally and attributed the gain to technical factors.
The Dow ended a five-day losing streak, closing up 117.07, or 1.4 percent, to 8,425.12. The Dow recouped some of the 610 points it gave up in the previous five days -- 355 of which were lost Tuesday.
The broader Tokyo Stock Price Index closed the morning session up 14.73 points, or 1.66 percent, to 901.12 Thursday. On Wednesday, TOPIX closed down 17.85 points, or 1.97 percent, at 886.39, the lowest finish since December 1984.
Advancers were led by banking issues UFJ, Mizuho, and Mitsubishi-Tokyo Financial Group.
Tokyo stocks got a boost from Wall Street's gains and from newspaper reports that the government is considering new measures to combat deflation, though traders said that they are doubtful the contents of the package will be effective.
The euro traded at 117.10 yen midmorning Thursday, up from 116.97 yen late Wednesday in Tokyo. Against the dollar, the euro was quoted at 99.18 cents, down from 99.40 cents.
The yield on the benchmark 10-year government bond was 1.1750 percent Thursday midmorning, down from Wednesday's close of 1.1950 percent. Its price rose 0.18 to 101.11.