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Tokyo stocks up 1.27% by break

Tokyo stocks jumped 1.27 percent on Thursday morning after two days of losses and despite a negative lead from Wall Street.

The Nikkei 225 index at the Tokyo Stock Exchange added 241.14 points to 19,275.98 by the break, while the broader Topix index of all first-section shares gained 1.37 percent, or 20.99 points, to 1,549.98.

"There's likely to be buying on dips," Mitsushige Akino, Tokyo-based executive officer of Ichiyoshi Asset Management, told Bloomberg News.

"But investors are still groping for the bottom, so it's unlikely they'll keep buying when the market gains. It's going to continue to be volatile."

Equities fell Wednesday after a disappointing business confidence survey by the Bank of Japan showed firms are increasingly pessimistic about a rebound in the world's number three economy.

Shares in New York retreated after data showed US construction spending dipped in February, while growth in the manufacturing sector slowed for the fifth straight month in March.

The Dow Jones Industrial Average falling 0.44 percent, while the S&P 500 lost 0.40 percent and the Nasdaq was down 0.42 percent.

A report from payrolls firm ADP showing a slump in business hiring in March also cast a shadow ahead of Friday's closely watched government labour report for the same month.

Investors will be hoping to find out if the economy is strong enough to absorb an interest rate hike, which is expected by the end of the year.

In Tokyo share trading, Toyota jumped 1.37 percent to 8,349.0 yen and Canon gained 2.85 percent to 4,297.0 yen after Citigroup raised its outlook on the stock, while market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, rose 0.40 percent to 46,955.0 yen.

Sony was up 2.55 percent at 3,317.5 yen after saying it is selling half its stake in Olympus Corp. to JPMorgan for 71.8 billion yen ($600 million)

Olympus, best known for its cameras but which is also a major player in the medical equipment market, dropped 4.30 percent to 4,230.0 yen on the news.

In forex markets, the dollar bought 119.64 yen, down from 119.76 yen in New York.