/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks gained Friday morning, boosted by unexpected news that Japan's economy had grown in the fourth quarter. The dollar weakened against the Japanese yen.
The benchmark 225-issue Nikkei Stock Average ended the morning session up 125.64 points, or 1.46 percent, at 8,725.30 Friday -- back above the 8,700 mark for the first time since Jan. 24. On Thursday, the index slipped 64.51 points, or 0.74 percent, to 8,599.66.
The dollar bought 120.40 yen at 11 a.m. Friday, down 0.42 yen from late Thursday in Tokyo and below its late New York level of 120.61 yen.
Japan's government announced early Friday that the economy grew in the October-December period with gross domestic product up 0.5 percent.
The announcement caught investors by surprise, who had expected it to fall, and sparked buying in domestic-demand related issues.
Shares related to chemicals, construction and real estate, as well as major banks were in the lead, such as Mitsubishi Tokyo Financial Group, Sumitomo Mitsui Financial Group and Nippon Steel. But worries remain about the nation's fragile economy, capping gains Friday. Investors have been rattled by the increasingly likely prospect of a U.S.-led war in Iraq and the turmoil it would create in global markets, especially on Japan's nascent recovery.
The broader Tokyo Stock Price Index of all first section issues edged up 7.19 points, or 0.84 percent, to 860.20 points Friday morning. The TOPIX fell 4.22 points, or 0.49 percent, to 853.01 Thursday.
U.S. stocks fell for the third straight day Thursday over anxiety about a war and more terrorism attacks.
The Dow Jones industrial average closed down 8.30, or 0.1 percent, at 7,749.87. The Nasdaq composite index slipped 1.53, or 0.1 percent, to 1,277.44.
In currency trading, the euro bought 130.41 yen Friday morning in Tokyo, even with is late Thursday level. Against the dollar, it traded at $1.0832, up from $1.0792.
The yield on Japan's benchmark 10-year government bond dipped to 0.8250 percent. Its price rose 0.14 to 99.77.