Tokyo stocks bounced back on Thursday as semiconductor-related shares got a boost from a surge in the market value of U.S. semiconductor giant Nvidia Corp. due to demand for its chips to power artificial intelligence.

The 225-issue Nikkei Stock Average ended up 213.34 points, or 0.55 percent, from Wednesday at 38,703.51. The broader Topix index finished 9.01 points, or 0.33 percent, higher at 2,757.23.

On the top-tier Prime Market, securities house, electric appliance and marine transportation issues were among the gainers.

The U.S. dollar maintained a weak tone, mostly trading in the upper 155 yen zone, amid prospects of a narrowing of the U.S.-Japanese interest rate differential after U.S. private payrolls data on Wednesday was more sluggish than expected and increased expectations of Federal Reserve rate cuts later this year.

Heavyweight semiconductor-related issues, including Tokyo Electron and Advantest, remained strong throughout the day, tracking their U.S. peers on reports that Nvidia's market valuation had hit the $3 trillion mark for the first time, making it the world's second-most valuable company.

Once initial buying ran out of steam, the market turned top-heavy, with investors cautious about chasing the upside ahead of the U.S. jobs data on Friday.

Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co., said that after a recent batch of weak economic data, including the payrolls, investors are now "increasingly anxious about whether the U.S. economy will achieve a soft landing" from inflation.

==Kyodo

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