TOKYO (Kyodo) -- The Nikkei stock index closed at a three-week high above 35,000 on Thursday, as investors bought shares on hopes of easing trade tensions between the United States and China.

The 225-issue Nikkei Stock Average ended up 170.52 points, or 0.49 percent, from Wednesday at 35,039.15, its highest closing level since April 2. The broader Topix index finished 8.24 points, or 0.32 percent, higher at 2,592.56.

On the top-tier Prime Market, gainers were led by nonferrous metal, insurance, and marine transportation issues.

The U.S. dollar fell to the upper 142 yen range in Tokyo, but stayed relatively firm after rising to around the mid-143 yen level in New York after U.S. Treasury Secretary Scott Bessent said the United States is not targeting specific currency levels in trade negotiations with Japan, dealers said.

Investors were cautious that U.S. President Donald Trump's administration will bring up exchange rates in talks with the Japanese finance minister on Thursday, given that he has accused Japan of devaluing its currency.

Stocks advanced as fears of an intensifying trade conflict between the United States and China receded after a report said the Trump administration is considering reducing tariffs on Chinese imports.

"Although concerns eased somewhat, uncertainty remains as the buying incentive was based only on news reports and not formal announcements following negotiations," said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.

Export-linked auto and electronics shares were widely sought on a weaker yen, which increases exporters' overseas profits when repatriated, while heavyweight technology issues tracked advances by their U.S. counterparts overnight.

Meanwhile, the rises were capped as investors locked in gains as the Nikkei index topped the 35,000 threshold and sat on the sidelines ahead of the talks between the Japanese and U.S. finance ministers in Washington on Thursday, brokers said.