TOKYO (Kyodo) -- The Nikkei stock index snapped a five-day losing streak Thursday on optimism over the U.S. economy as hopes grew for further interest rate cuts, although gains were limited by a stronger yen hurting export-oriented issues.

The 225-issue Nikkei Stock Average ended up 128.02 points, or 0.33 percent, from Wednesday at 38,572.60. The broader Topix index finished 2.50 points, or 0.09 percent, lower at 2,688.31.

On the top-tier Prime Market, gainers were led by securities house, and oil and coal product issues, while marine transportation and air transportation issues were main decliners.

The U.S. dollar hit a one-month low of 155.21 in Tokyo as the yen was bought amid speculation about possible monetary tightening by the Bank of Japan after Governor Kazuo Ueda said a rate hike would be discussed at its policy meeting next week, dealers said.

At 5 p.m., the dollar fetched 156.18-20 yen compared with 156.42-52 yen in New York and 156.87-89 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0297-0298 and 160.82-86 yen against $1.0284-0294 and 161.04-14 yen in New York and $1.0305-0306 and 161.66-70 yen in Tokyo late Wednesday afternoon.

The yield on the benchmark 10-year Japanese government bond fell 0.050 percentage point from Wednesday's close to 1.200 percent, tracking a decline in long-term U.S. Treasury yields.

Stocks were lifted by a sharp overnight advance in U.S. shares after the consumer price index for December landed below market expectations, analysts said.

"Recent concerns over inflation resurgence (in the United States) had led to some speculation that the Federal Reserve may not conduct any rate reductions this year or that it may even hike them, but the data removed such worries," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

Market participants also sought bargains after the Nikkei benchmark lost more than 1,600 points over the past five trading days, analysts said.

But the market was pressured by the selling of automaker and other exporter issues on a firming yen, which reduces exporters' overseas profits when repatriated.

Investors also refrained from chasing the upside ahead of the presidential inauguration of Donald Trump and the BOJ policy meeting next week.

"Focus is on the inauguration speech by the new president to gauge his policies on tariffs and immigration," Yamaguchi said. "The sense of uncertainty will likely not be extinguished for a while longer."