TOKYO, Feb. 2 (Xinhua) -- Tokyo stocks closed higher Tuesday, as Wall Street's overnight rise helped ease concerns over recent turbulence caused by retail investors grouping together to take on hedge funds specializing in shorting stocks, with solid company earnings here and a weak yen adding support.
The 225-issue Nikkei Stock Average gained 271.12 points, or 0.97 percent, from Monday to close the day at 28,362.17.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 17.18 points, or 0.94 percent, to finish at 1,847.02.
After a lackluster opening, the pace of buying increased as investors continued to pick up bargains following the market's recent slump, local brokers said.
They added that domestic firms reporting solid earnings and outlooks also found favor, with the market's upbeat sentiment underpinned by hopes for further stimulus in the United States.
"Investors bought shares as worries about further disruptions in the U.S. market eased somewhat," Makoto Sengoku, a market analyst at the Tokai Tokyo Research Institute, was quoted as saying.
Other analysts concurred, adding that the U.S. economy is showing signs of stability amid hopes for corporate earnings in the tech sector there as well as with Japanese manufacturers.
"U.S. markets are starting to settle down, so we can turn our attention back to earnings and fundamentals," Takashi Nishizawa, head of research at Nomura Securities, was quoted as saying.
"The U.S. economy is on a stable footing. There's optimism about earnings for the U.S. tech sector and Japanese manufacturers," Nishizawa added.
The Japanese government's plan to extend the state of emergency over the novel coronavirus later in the day by one month until March 7, had little bearing on the markets, as investors had already factored in the highly-anticipated move, strategists here said.
By the close of play, nonferrous metal, transportation equipment and land transportation issues comprised those that gained the most.
Automotive components maker Denso jumped 7.2 percent, after the firm upgraded its profit estimate.
Exporter-linked issues advanced on the yen's retreat as profits are boosted when repatriated and competitiveness in overseas markets enhanced.
As such, Honda Motor rose 1.2 percent, while Panasonic gained 3.1 percent. Toyota Motor, meanwhile accelerate 2.2 percent by the close.
On the main section on Tuesday, 1,168.98 million shares changed hands, rising from Monday's volume of 1,145.53 million shares.
Issues that rose outpaced those that fell by 1,730 to 379 on the First Section, while 82 ended the day unchanged.
The turnover on the second trading day of the week came to 2,577.28 billion yen (24.55 billion U.S. dollars). Enditem
