TOKYO (Kyodo) -- Tokyo stocks ended slightly higher Tuesday, as investors hunted for bargains after the Nikkei index's plunge to a seven-month low, with gains capped amid caution over U.S. reciprocal tariffs.

The 225-issue Nikkei Stock Average ended up 6.92 points, or 0.02 percent, from Monday at 35,624.48. The broader Topix index finished 3.00 points, or 0.11 percent, higher at 2,661.73.

On the top-tier Prime Market, gainers were led by pharmaceutical, electric power and gas, and mining issues.

The U.S. dollar briefly weakened to the mid 149 yen zone in Tokyo, as speculation grew that the Bank of Japan could raise interest rates after its Tankan survey showed companies are willing to make investments and were not overly cautious about their prospects, dealers said.

At 5 p.m., the dollar fetched 149.62-64 yen compared with 149.92-150.02 yen in New York and 149.13-15 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.0800-0802 and 161.60-64 yen against $1.0809-0819 and 162.11-21 yen in New York and $1.0831-0832 and 161.53-57 yen in Tokyo late Monday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 1.500 percent, up 0.015 percentage point from Monday's close.

Stocks were initially buoyed after the Nikkei index lost 4 percent Monday and the U.S. Dow Jones index advanced overnight, but the market lost momentum amid a cautious mood before the U.S. government is expected to announce details of reciprocal tariffs.

The key indexes briefly slid to negative territory as investors refrained from buying ahead of U.S. employment and other data later this week amid concern about an economic slump accompanied by high inflation in the world's largest economy, brokers said.

"The market's concern about the U.S. economy may be excessive given the current economic developments and outlook," said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.

"The stock market could stage a recovery at an early date once details of the reciprocal tariffs are unveiled and (governments) respond to the measures," Sawada said.