Tokyo stocks rose Friday morning on bargain buying, after opening losses triggered by a Bank of Japan survey that reflected weakening business sentiment. The dollar was up against the yen and euro.
The Nikkei Stock Average of 225 selected issues gained 21.03 points, or 0.18 percent, to end morning trade at 11,689.98 points. The index rose 103.07 points, or 0.89 percent, on Thursday.
The dollar was trading at 107.42 yen at 11 a.m., up 0.46 yen from late Thursday in Tokyo and above the 107.20 yen it bought in New York later that day.
Stocks started lower as investors sold blue chips in technology, bank and real estate after the central bank's tankan report showed optimism among large Japanese manufacturers was deteriorating, underlying increasing worries about the fragility of the nation's economic recovery.
But bargain hunting by institutional players pushed the index back into positive territory, with the tankan results also factored into the market.
The broader TOPIX, which includes all issues on the Tokyo Stock Exchange's first section, added 1.39 points, or 0.12 percent, to 1,183.57. The TOPIX added 13.07 points, or 1.12 percent, the day before.
U.S. stocks fell Thursday as investors weighed rising U.S. incomes and consumer spending against lofty oil prices.