TOKYO -- It was as if Thursday's tech tumble was created so that investors could find another opportunity to climb back into the sector. With

Nasdaq

rallying overnight, Asian investors bargain hunted for shares of chip makers, erasing most of the losses seen yesterday.

Still, investors in Tokyo remained cautious ahead of the weekend meeting between the

Group of Seven

finance ministers and the upcoming policy board meeting by the

Bank of Japan

on July 17.

The

Nikkei 225

index rose 115.87 points to 17,398.24, while the

Topix

index, which includes all shares listed on the

Tokyo Stock Exchange

, climbed 6.73 to 1597.36. The

Jasdaq

small-cap index jumped 1.09, or 1.3%, to 87.23, while the Nikkei

over-the-counter

index rose 13.41 to 1790.60.

Most Japanese chip makers gained during the course of the day but got hit by some light profit taking by dealers by the end of the session.

Tokyo Electron

rose 520 yen, or 3.6%, to 15,000 ($139.51),

Mitsubishi Electric

(MIELY)

shed 22, or 2.0% to 1085, while

Matsushita Electric Industrial

(MC) - Get Report

climbed 20 to 2815.

Softbank

rallied 2000, or a whopping 18.7%, to 12,700 after a week-long slump.

Nippon Telegraph & Telephone

(NTT)

gained 60,000, or 4.1%, to 1.54 million despite a report in the

Wall Street Journal

today that said the U.S. Federal Bureau of Investigation raised concerns over the telecom company's intended purchase of

Verio

(VRIO)

.

With many investors scrambling to cover their short positions, the greenback edged higher against the yen and recently bought 107.52.

Hong Kong's

Hang Seng

index rose 340.37 points, or 2.1%, to 16,829.96 largely on a telecom rally.

Hutchison Whampoa

(HUWHY)

jumped HK$1.50, or 1.4%, to 109.50 ($14.04) after reports that the firm would withdraw from the Netherlands auction for third-generation mobile phone licenses, while

China Mobile

(CHL) - Get Report

rose 3.00, or 4.3%, to 72.25.

Sun Hung Kai Properties

(SUHJY)

gained 1.75, or 2.9%, to 61.75 on news that its newest apartment development project was enjoying brisk demand. SHK's partner in the development

China Resources Enterprise

jumped 0.40, or 4.0%, to 10.30.

Elsewhere in Asia, Korea's

Kospi

index gained 4.11 to 841.74, while Taiwan's

TWSE

index dropped 116.31, or 1.4%, to 8173.08.