Japanese stocks opened higher on Wednesday following an overnight rally on Wall Street, after falling for the previous three days of trading.

After shedding 7.4 per cent since Friday, the benchmark Nikkei 225 Stock Average had gained 145.43 points, or 1.63 per cent, to trade at 9,089.91 as of 9:11 am (0011 GMT).

The broader-based Topix index was up 9.03 points, or 1.17 per cent, at 779.42.

On Tuesday, the Dow Jones Industrial Average recovered nearly 4 per cent after the US Federal Reserve indicated it would keep its benchmark interest rates at record lows, between 0 and 0.25 per cent.

The Dow fell 5.55 per cent Monday amid a global selloff following Friday’s downgrading of US government debt by credit rating agency Standard and Poor’s.

In Tokyo, on currency markets at 9 am (0000 GMT), the dollar was trading at 77.14-15 yen, down from Tuesday’s 5 pm quote of 77.30-32 yen.

The euro was trading at 1.4355-4356 dollars, up from 1.4204-4207 dollars Tuesday, and at 110.72-76 yen, up from 109.82-83 yen.

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