Japanese stocks rose 1.8% as eased concerns over potential U.S. Federal Reserve rate hikes and gains in American technology shares buoyed the market. Semiconductor and electronics firms led the ascent, with Advantest soaring 6.2%, Kioxia Holdings up 6.0%, and Murata Manufacturing gaining 6.2%. The dollar strengthened to 159.33 yen from 159.40 yen at Wednesday's Tokyo close. Investors remain vigilant over the Iran conflict and oil price fluctuations. The Nikkei Stock Average closed at 68745.28, up 1.8%.

The rally reflected broader global tech sector momentum, with U.S. gains providing intraday catalysts for Tokyo's benchmark index. Chip equipment and memory storage stocks outperformed, signaling renewed demand optimism amid macroeconomic uncertainty.

Market participants are balancing Fed policy expectations against geopolitical risks, with crude oil prices and Middle East tensions closely monitored as potential volatility drivers in coming sessions.