Tokyo - The Tokyo stock market opened more than 3 per cent higher Thursday after the US Federal Reserve cut its key interest rate to spur the economy.

The Nikkei 225 Stock Average gained 318.87 points, or 3.88 per cent, to 8,530.77.

The broader Topix index of all first-section issues was up 25.51 points, or 3.07 per cent, to 855.83.

Japan's central bank withdrew 1.5 trillion yen (15.41 billion dollars) from the money market Thursday after the key short-term interest rate fell below the official target.

The dollar's advance against the yen helped investors to buy back mainly export-oriented issues.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 97.54-59 yen, down from Wednesday's 5 pm quote of 96.85-86 yen.

The euro was quoted at 1.2955-60 dollars, up from Wednesday's 5 pm quote of 1.2690-92 dollars, and at 126.41-46 yen, up from 122.91-95 yen. (dpa)