This file photo shows the Tokyo Stock Exchange. (Mainichi)

       TOKYO (Kyodo) -- Tokyo stocks were sharply higher Thursday morning, with the Nikkei index briefly rising over 2 percent, as investors reacted with relief after results of the U.S. Federal Reserve's policy meeting landed within market expectations.

       The 225-issue Nikkei Stock Average rose 444.53 points, or 1.56 percent, from Wednesday to 28,904.25. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 24.21 points, or 1.22 percent, at 2,008.31.

       Every industry gained ground, led by marine transportation, precision instrument and mining issues.

       The U.S. dollar stayed firm in the lower 114 yen range in Tokyo after climbing from the upper 113 yen level overnight, as U.S. Treasury yields rose after the Fed signaled three interest rate hikes next year and decided to withdraw its bond purchases faster than earlier planned, dealers said.

       At noon, the dollar fetched 114.12-13 yen compared with 114.00-10 yen in New York and 113.73-74 yen in Tokyo at 5 p.m. Wednesday.

       The euro was quoted at $1.1289-1290 and 128.81-86 yen against $1.1290-1300 and 128.76-86 yen in New York and $1.1264-1266 and 128.11-15 yen in Tokyo late Wednesday afternoon.

       Tokyo stocks were sharply higher from the outset, with the benchmark Nikkei index climbing above the 29,000 mark for the first time since Nov. 26, as investors purchased a wide range of issues.

       Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, said the decision by the Federal Reserve to roll back its support for the pandemic-hit economy faster than earlier planned amid concerns over rising inflation did not come as a surprise to investors.

       The U.S. central bank's suggestion of a possible three rate hikes next year also helped "remove uncertainties" among investors, he added.

       "Market participants' sentiment was also lifted after Fed Chairman (Jerome) Powell indicated that the Omicron COVID-19 variant will likely not alter the Fed's policies," Yamaguchi said.

       High-tech issues, including those of chip-manufacturing equipment makers, advanced, tracking gains in their U.S. counterparts, brokers said.

       Tokyo Electron rose 1,270 yen, or 2.1 percent, to 62,640 yen, while Advantest was up 410 yen, or 4.1 percent, to 10,460 yen and Lasertec surged 1,300 yen, or 4.3 percent, to 31,660 yen.

       Among marine transportation issues, Nippon Yusen rose 370 yen, or 4.6 percent, to 8,410 yen, and Mitsui O.S.K. Lines increased 280 yen, or 3.6 percent, to 8,040 yen.

       On the First Section, advancing issues outnumbered decliners 1,676 to 400, while 108 ended the morning unchanged.

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