TOKYO (Kyodo) -- Tokyo stocks ended higher Thursday after a news report that U.S. restrictions on semiconductor equipment sales to China would not be as strict as previously imagined.

The 225-issue Nikkei Stock Average ended up 214.09 points, or 0.56 percent, from Wednesday at 38,349.06. The broader Topix index finished 21.94 points, or 0.82 percent, higher at 2,687.28.

On the top-tier Prime Market, gainers were led by farm and fishery, food and mining issues.

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 upper 151 yen range in Tokyo as Japanese importers bought the U.S. currency for month-end settlement purposes, dealers said.

At 5 p.m., the dollar fetched 151.75-78 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 $1.0536-0538 and 159.90-94 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.

The yield on the benchmark 10-year Japanese government bond fell 0.020 percentage point from Wednesday's close to 1.050 percent, tracking a decline in long-term U.S. Treasury yields.

Stocks were initially lower, with the Nikkei index at one point dipping below the 38,000 threshold in the morning as it tracked an overnight fall on Wall Street.

But the benchmark climbed 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.

"The restrictions caused a blow to the markets when they were first talked about in the summer, but the news that they wouldn't be as severe led to a sense of relief," said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute, noting that many heavyweight chip shares gained in reaction.

Markets were also supported by the dollar regaining some strength following its rapid overnight fall, while some investors sought bargains after a two-day loss, analysts said.