Japanese stocks rose on Thursday morning, recovering from an opening dip as high-tech stocks were lifted by reports of an investment deal for a troubled U.S. bond insurer that helped ease concerns about the subprime loan crisis.
The Nikkei 225 rose 72.95 points, or 0.55 percent, to 13,417.98 points on the Tokyo Stock Exchange by midday on Thursday.
The index shed 0.99 percent the day before.
Tokyo shares fell after Thursday's open, tracking overnight declines on Wall Street amid concerns that problems in the U.S. bond insurance sector could spill over into the Japanese economy.
Blue-chip high tech stocks led the morning gains.
The broader Topix index, which includes all shares on the exchange's first section, added 8.77 points, or 0.66 percent, to 1,328.88.