Tokyo, March 8 : Japanese shares rose in Tuesday morning trading as investors picked up bargain stocks after sharp falls on the previous day.

The benchmark Nikkei 225 Stock Average added 40.42 points, or 0.38 percent, to trade at 10,545.44 while the broader Topix index was up 1.23 points, or 0.13 percent, at 942.86.

Some high-tech issues got a boost after Hitach Ltd said Monday the electronics giant had agreed to sell its US-based hard drive unit to rival Western Digital Corp for about 4.3 billion dollars in cash and stock.

Investors were still cautious about surging oil prices amid intensifying turmoil in major oil producer Libya. Overnight oil prices rose to a 29-month high in New York amidst attacks on rebels by Libyan leader Muammar Gaddafi's security forces.

On currency markets at 9 a. m. (0000 GMT), the dollar traded at 82.29-30 yen, up from Monday's 5 p. m. quote of 82.22-23 yen.

The euro traded at $1.3962-3963, down from $1.3974-3975 Monday, and at 114.89-91 yen, flat from 114.90-94 yen.(DPA)