The key Nikkei stock index rose Thursday morning, tracking Wall Street gains overnight, with exporters lifted by bolstered confidence that a global recovery is on the right track.

The 225-issue Nikkei Stock Average gained 43.57 points, or 0.44 percent, from Wednesday to 9,915.25. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 0.54 points, or 0.06 percent, to 871.75.

Gainers were led by precision machinery, auto, and oil and coal product issues. Major decliners included the air transport, pharmaceutical and insurance sectors.

"The upbeat contents of various economic indicators this week such as (Japanese) machinery orders and Chinese data are underpinning the market," said Yumi Nishimura, a senior equity market analyst at Daiwa Securities SMBC Co. "They reassured investors that the global economy's recovery, while still only moderate, is continuing."

New York stocks rose Wednesday with the Dow Jones index up for the sixth straight session, fueled by recovery hopes from the continued U.S. ultra-easy credit policy and encouraging Chinese industrial output data.

Among exporter gainers, Toyota Motor, the morning value leader, rose 80 yen, or over 2 percent, to 3,510 yen while Honda Motor gained almost 2 percent. Consumer electronics maker Sharp was up 15 yen, or over 1 percent, to 974 yen.

FamilyMart climbed 60 yen, or over 2 percent, to 2,545 yen on news that the convenience store chain operator and its top shareholder, major trading house Itochu Corp., are in the final stages of talks to acquire smaller rival am/pm Japan Co. Itochu rose about 2 percent.

But the Tokyo market remained top-heavy, with strong resistance around the Nikkei's 10,000 line capping gains. Investors also remained jittery about any further strengthening of the yen and uncertainties over the new government's economic policies, brokers said.

"The yen remains relatively strong and although major exporters, especially automakers, have already revised their assumed exchange rate for the latter half of this fiscal year, there is a certain amount of caution about the U.S. dollar weakening further," Nishimura said.

On the First Section, declining issues overwhelmed advancing ones 1,115 to 384, with 155 others ending the morning unchanged.

Shipper Nippon Yusen lost 8 yen, or over 2 percent, to 319 yen amid fears of per-share value dilution after reports of its plan to make its first public offering of common stock in 40 years as early as next month.

Major retailer Seven & I Holdings fell 35 yen, or about 2 percent, to 1,913 yen. The Nikkei business daily reported that Seven & I was surpassed by Fast Retailing Co., ending its 18-year run as the nation's top retailer in terms of market value.

Volume leader Mizuho Financial Group ended the morning unchanged at 178 yen.

Trading volume on the main section came to 778.35 million shares, down from Wednesday morning's 844.52 million.

The TSE's Second Section index was down 7.64 points, or 0.36 percent, to 2,089.87 on a volume of 26.34 million shares. On the Osaka Securities Exchange, the near-term December Nikkei 225 index futures contract was up 40 points to 9,920.