Tokyo stocks bounced back slightly following sharp losses earlier this week as investors bought select technology blue chips and real estate issues.
The Nikkei Stock Average of 225 issues gained 22.94 points, or 0.21 percent, to close at 10,872.33 points. On Monday, the index declined 233.45 points, or 2.11 percent.
Financial markets in Japan were closed yesterday for a national holiday.
The US currency clawed back its way from the 4 1/2-year low against the yen it touched in Tokyo on Friday.
However, many stock investors remained cautious about the dollar's direction. A weak dollar hurts Japan's economy by making Japanese exports to the United States more expensive, and erodes exporters' overseas earnings when they are converted back to yen.
"There will likely be an intervention, and there is no need to be so nervous about the strong yen," said Tetsuya Ishijima, senior strategist at Okasan Securities.
Among gainers were technology blue chips Sony Corp and Kyocera Corp., telecom NTT Data Corp. and real estate giants Mitsui Fudosan Co. and Heiwa Real Estate Co.
But banks were also mixed, and high-tech stalwarts NEC Corp. and Toshiba Corp. declined.
The index of all issues on the Tokyo Stock Exchange's first section rose 1.16 points, or 0.11 percent, to close at 1,090.93 points. The TOPIX lost 20 points, or 1.80 percent, on Monday.
First-section volume fell to 1.202 billion shares, from Monday's 1.217 billion shares. Advancing issues outnumbered decliners 805 to 627, while 160 issues remained unchanged.
The euro was up at $1.3114 late today in Tokyo from $1.3025 late Monday. Against the yen, the euro rose to 135.40 yen from 134.50 yen. In late New York trading, the euro was at $1.3077, off its all-time high of $1.3105 hit earlier.
Traders said the dollar remained close to an all-time low against the euro because of the growing belief that investors will shift money from dollar-denominated assets into European securities.
U.S. stocks ended mixed Tuesday as the euro's recrd-high levels against the dollar prompted Wall Street to worry about a fall-off in foreign investment and more expensive imports that could curtail consumer spending.
The Dow Jones industrial average added 3.18, or 0.03 percent, to 10,492.60, but the Nasdaq composite index dropped 0.91, or 0.04 percent, to 2,084.28.
In bond trading in Tokyo, the yield on Japan's benchmark 10-year government bond was unchanged at 1.4000 percent, from Monday. Its price was at 100.86 points.
AP