TOKYO (Kyodo) -- Tokyo stocks were moderately higher Thursday morning, erasing early losses following a news report that U.S. restrictions on semiconductor equipment sales to China would not be as severe as previously expected.

The 225-issue Nikkei Stock Average rose 160.16 points, or 0.42 percent, from Wednesday to 38,295.13. The broader Topix index was up 14.62 points, or 0.55 percent, at 2,679.96.

The U.S. dollar hit a one-month low of 150.45 yen in New York overnight on speculation that the Federal Reserve will cut interest rates further at its policy meeting next month.

But it rose back up to the lower 151 yen range in Tokyo as Japanese importers bought the U.S. currency for month-end settlement purposes, dealers said.

At noon, the dollar fetched 151.44-45 yen compared with 151.08-18 yen in New York and 151.94-97 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0556-0558 and 159.86-90 yen against $1.0561-0571 and 159.69-79 yen in New York and $1.0498-0499 and 159.52-56 yen in Tokyo late Wednesday afternoon.

Stocks opened lower, with the Nikkei index at one stage dipping below the 38,000 line after an overnight decline on Wall Street.

But stocks pared losses and rose into positive territory after Bloomberg reported that while U.S. President Joe Biden is considering additional restrictions on sales of semiconductor technology and AI memory chips to China, the curbs would not be as strict as previously expected, analysts said.