Stocks in Tokyo recovered Thursday from early falls related to a strengthening yen because of investor speculation that the central bank would drop interest rates, dpa reported.
The benchmark Nikkei 225 Stock Average was up 74.52 points in morning trading, or 0.86 per cent, at 8,687.04.
The broader Topix index of all first-section issues also rose 2.64 points, or 0.31 per cent, to 841.1.
The increases were seen as a two-day meeting of the Bank of Japan got under way with investors betting that the central bank would ease borrowing rates after the US Federal Reserve lowered its benchmark rate to a record low this week.
On currency markets at 9 am (0000 GMT), the dollar was quoted at 87.26-31 yen, dipping from Wednesday's 5 pm quote of 88.69-71 yen. A stronger yen makes Japanese products more expensive overseas and reduces exporters' overseas earnings.
The euro was quoted at 1.4400-05 dollars, up sharply from 1.4079-81 dollars late Wednesday, and at 125.68-73 yen, up from 124.87-91 yen.