Tokyo stocks rose Tuesday morning with initial buying spurred by gains on Wall Street overnight, as U.S. diplomatic efforts in the Israel-Hamas war eased concern over global economic uncertainty.

The 225-issue Nikkei Stock Average rose 285.28 points, or 0.90 percent, from Monday to 31,944.31. The broader Topix index was up 11.82 points, or 0.52 percent, at 2,285.36.

On the top-tier Prime Market, gainers were led by service, precision instrument, and information and communication issues.

The U.S. dollar was range-bound, trading mostly in the mid-149 yen level in Tokyo, amid a lack of fresh trading incentives, dealers said.

At noon, the dollar fetched 149.54-56 yen compared with 149.46-56 yen in New York and 149.56-58 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.0550-0551 and 157.72-82 yen against $1.0555-0565 and 157.82-92 yen in New York, and $1.0534-0535 and 157.55-59 yen in Tokyo late Monday afternoon.

Tokyo stocks opened sharply higher, with the Nikkei briefly rising over 600 points to above the 32,000 line, buoyed by bargain-hunting of issues sold heavily the previous day and gains in U.S. shares amid Washington's efforts to contain the conflict between Israel and Palestinian militant group Hamas, analysts said.

The news early Tuesday that U.S. President Joe Biden will go to Israel to hold talks with Israeli Prime Minister Benjamin Netanyahu also helped ease investor concern, they said.

But some gains were trimmed later in the morning amid persistent uncertainty over the potential for the Israel-Hamas war to spread to other parts of the Middle East and affect the global economy, the analysts said.

"The latest diplomatic move raised hopes that the situation could calm," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute. "But it is too early to judge that the war may be nearing an end."

Although crude oil prices fell slightly overnight, investors remained reluctant to buy stocks actively amid overriding uncertainty over the Middle East situation, he added.

Gains on the U.S. benchmark semiconductor index led to buying of chip-related stocks in Tokyo after previous sharp losses, with chip-manufacturing equipment maker Screen Holdings up 239 yen, or 3.3 percent, to 7,562 yen, and Tokyo Electron rising 425 yen, or 2.1 percent, to 20,820 yen.

==Kyodo

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