Tokyo stocks were higher Thursday morning, as semiconductor-related shares got a boost from U.S. chip giant Nvidia Corp.'s robust earnings report, while concerns over higher borrowing costs weighed on the upside.

The 225-issue Nikkei Stock Average rose 296.38 points, or 0.77 percent, from Wednesday to 38,913.48. The broader Topix index was up 10.13 points, or 0.37 percent, at 2,747.49.

The U.S. dollar was firm in the upper 156 yen range in Tokyo on expectations that U.S. interest rates will remain high after the minutes of the last Federal Reserve policy meeting showed central bank officials were cautious about cutting rates amid persistent inflation, dealers said.

At noon, the dollar fetched 156.73-74 yen compared with 156.77-87 yen in New York and 156.40-41 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0828-0829 and 169.70-74 yen against $1.0817-0827 and 169.62-72 yen in New York and $1.0857-0859 and 169.81-85 yen in Tokyo late Wednesday afternoon.

Stocks rose as heavyweight technology issues drew buying after Nvidia's quarterly earnings and projections exceeded the estimates of market players who were anticipating robust results from the company that has powered the boom in artificial intelligence, brokers said.

"Nvidia's report was perfect, but the response of the Japanese market was a bit sluggish, as it has been conducive to profit-taking" amid rising long-term interest rates, said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Intelligence Laboratory Co.

Real estate issues continued to face selling pressure on concerns about higher borrowing costs. Japan's benchmark 10-year government bond yield touched the 1 percent threshold Wednesday for the first time in 11 years.

==Kyodo

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