Tokyo - Tokyo stocks rebounded Friday after overnight gains on Wall Street.

The benchmark Nikkei 225 Stock Average rose 128.49 points, or 1.06 per cent, in morning trading to 12,230.99.

The broader Topix index of all first-section issues was also up 12.44 points, or 1.06 per cent, at 1,175.16.

Investors in Tokyo and New York were cheered by takeover speculation about embattled Lehman Brothers Holdings Inc, which helped lift concern about financial markets.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 107.15-20 yen, down from Thursday's 5 pm quote of 107.20-23 yen.

The euro was quoted at 1.4005-10 dollars, up from Thursday's 5 pm quote of 1.3930-33 dollars, and at 150.07-12 yen, up from 149.36-40 yen. (dpa)