Tokyo stocks soared Tuesday morning, with the Nikkei index trading at a 34-year high, as confidence in technology firms was raised after a major semiconductor-related company upwardly revised its profit forecast.

The 225-issue Nikkei Stock Average rose 901.47 points, or 2.44 percent, from Friday to 37,798.89. The broader Topix index was up 47.40 points, or 1.85 percent, at 2,605.28. Japan's financial markets were closed Monday for a public holiday.

On the top-tier Prime Market, gainers were led by insurance, service and electric appliance issues.

The U.S. dollar largely traded narrowly in the lower 149 yen range as traders awaited the release of January U.S. consumer price data to assess the Federal Reserve's success in taming inflation and when interest rate cuts could begin.

At noon, the dollar fetched 149.44-49 yen compared with 149.32-42 yen in New York at 5 p.m. Monday.

The euro was quoted at $1.0763-0767 and 160.84-96 yen against $1.0766-0776 and 160.82-92 yen in New York late Monday afternoon.

The benchmark Nikkei index hit its highest level since February 1990. Traders returned from the Monday public holiday with multiple buying cues after the U.S. Dow Jones index hit a new all-time high overnight and the yen's continued weakness raised prospects of boosted exporter profits.

Technology shares accounted for a large part of the Nikkei's rise. Major semiconductor manufacturing equipment maker Tokyo Electron surged over 11 percent after revising up on Friday its profit forecast for the year ending March.

"Strong results from Tokyo Electron and high growth expectations for semiconductors that tracked rises in major U.S. tech firms led to Japanese stocks being pushed up today," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

==Kyodo

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