Tokyo stocks rebounded Friday after overnight gains on Wall Street, ending a three-day losing streak.

The benchmark Nikkei 225 Stock Average gained 112.26 points, or 0.93 per cent, to close at 12,214.76.

The broader Topix index of all first-section issues was also up 14.48 points, or 1.25 per cent, to 1,177.2.

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

For the week, the Nikkei went up 0.02 per cent, and the Topix also rose 0.54 per cent.

On currency markets at midday (0300 GMT), the dollar was quoted at 107.20-25 yen, almost unchanged from Thursday's 5 pm quote of 107.20-23 yen.

The euro was quoted at 1.3986-91 dollars, up from Thursday's 5 pm quote of 1.3930-33 dollars, and at 149.95-150.00 yen, up from 149.36-40 yen.