Volkswacht Bodensee - Tokyo stocks rise as BoJ holds rates steady

Japan's main Nikkei 225 index and broader Topix index were up in morning trade, with the Bank of Japan holding interest rates steady amid uncertainty over US President Donald Trump's fast-changing trade policy.

The BoJ left its benchmark interest rate unchanged at around 0.5 percent for a second straight meeting, but halved its growth forecasts for the world's fourth-largest economy.

The central bank said it now expects Japan's gross domestic product (GDP) to rise 0.5 percent in fiscal 2025, down from its previous estimate of 1.1 percent.

On Wednesday, Wall Street stocks opened sharply lower after US government data showed the US economy shrank by an annual rate of 0.3 percent in the first quarter, amplifying recession worries.

But US equity markets moved gradually higher through the day, rising after mid-morning data showed personal spending in March topped estimates.

As more companies pull back from earnings forecasts in the face of the uncertainty regarding US tariffs, tech giants Meta and Microsoft reported quarterly profits that were above expectations.

Shares in Meta -- which owns Facebook, Instagram and WhatsApp -- rose more than four percent in after-market trades.

"Strong earnings reports from US IT companies are expected to drive gains, led by the electronics sector," strategist Takashi Ito of Nomura Securities told Bloomberg.

Kathleen Brooks, research director at XTB, said US stocks "staged an impressive recovery" on Wednesday after falling on the worse than expected GDP data.

"For now, fears about the end of American exceptionalism look a little extreme," she said in a note.

"Both Microsoft and Meta beat earnings expectations, which could lead some to argue that concerns about China's threat to US AI dominance was overdone," Brooks added.

Several markets were shut in Asia for holidays on Thursday, including in Hong Kong and mainland China.

Among open indexes, Sydney and New Zealand were up.

Markets are looking ahead to Friday's US jobs data for April, which will be the first tangible reading of economic conditions after the Trump administration's sweeping April 2 tariffs -- many of which have been suspended.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 0.5 percent at 36,241.70

Hong Kong - Hang Seng Index: closed for holiday

Shanghai - Composite: closed for holiday

Euro/dollar: DOWN at $1.1312 from $1.1342 on Wednesday

Pound/dollar: DOWN at $1.3314 from $1.3328

Dollar/yen: DOWN at 143.13 yen from 143.18 yen

Euro/pound: FLAT at 84.97 pence

West Texas Intermediate: FLAT at $58.19 per barrel

Brent North Sea Crude: UP 0.10 percent at $61.12 per barrel

New York - Dow: UP 0.4 percent at 40,669.36 (close)

London - FTSE 100: UP 0.4 percent at 8,494.85 (close)

burs-sco/pst

R.Buehler--VB