Tokyo stocks recovered Thursday with the benchmark Nikkei index jumping over 530 points, or 2.3 percent, as investor concern eased regarding a further escalation of tensions between the United States and Iran.

The 225-issue Nikkei average ended up 535.11 points, or 2.31 percent, from Wednesday at 23,739.87, its highest close since Dec. 27. The broader Topix index of all first section issues on the Tokyo Stock Exchange finished 27.65 points, or 1.63 percent, higher at 1,729.05.

Easing concern about the situation in the Middle East prompted investors to unload safe-haven assets including the yen, which had appreciated to a three-month high against the U.S. dollar following Iran's attacks on bases hosting U.S. troops in Iraq on Wednesday.