/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks followed Wall Street higher Thursday morning, as U.S.-led forces closed in on Baghdad and investors speculated the war in Iraq may conclude soon. The dollar was down against the yen.
The 225-issue Nikkei Stock Average climbed 35.04 points, or 0.43 percent to 8,104.89 during the morning session. The index gained 83.13 points, or 1.04 percent, to close at 8,069.85 Wednesday.
The dollar bought 118.70 yen at 11 a.m., down 0.13 yen from late Wednesday in Tokyo and below the 118.98 yen it bought in late New York trading.
Canon, Sony, Toyota and Honda, among other major exporters, led the market higher, as investors hoped a swift end to the war would boost the American economy and lift sales of companies with a heavy presence in the U.S. market.
On Wall Street Wednesday, shares shot higher as U.S. and British forces neared Iraq's capital, boosting investor optimism that the two-week-old war with Iraq might end sooner than many in the market had expected.
The Dow Jones industrial average closed up 215.20, or 2.7 percent, at 8,285.06.
By early Thursday, U.S. forces closed to within 20 miles of Baghdad and warplanes continued to pound targets in the city.
The broader Tokyo Stock Price Index rose 3.47 points, or 0.44 percent, to 801.03 at midday. The TOPIX, which includes more than 1,000 of Japan's largest and most prestigious company issues, gained 6.23 points, or 1.09 percent, to close at 797.56 Wednesday.
In other currencies, the euro bought $1.0778 late Thursday morning in Tokyo, down from $1.0826 late Wednesday. Against the yen, the euro traded at 127.95 yen, down from 128.63 yen.
The yield on Japan's benchmark 10-year government bond fell to 0.6750 percent Thursday morning from 0.6950 late Wednesday. Its price rose 0.19 to 101.11.