TOKYO, Sept. 1 (Xinhua) -- Tokyo stocks closed higher Wednesday on hopes for the normalization of domestic economic activity, with Japan's nationwide COVID-19 infections appearing to have struck a spike, local media reported Wednesday.
The 225-issue Nikkei Stock Average finished up 361.48 points, or 1.29 percent, from Tuesday at 28,451.02.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 20.09 points, or 1.02 percent, higher at 1,980.79.
Gaining issues were led by pulp and paper, air transportation, and securities house issues.
The Nikkei benchmark finished at its highest since July 14, supported by a denting yen, while a recent drop in the number of COVID-19 cases in Japan also encouraged market sentiment, brokers said.
"The overall decline of nationwide COVID-19 cases may lead to a reduction in patients with severe symptoms, which is currently at an all-time high, and allow the country to move towards the normalization of economic conditions," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.
A total of 17,713 new COVID-19 cases were confirmed across the country Tuesday, falling from over 20,000 infection cases that have been marked over the past couple of weeks. In Tokyo, the seven-day rolling average of the cases tumbled 24.1 percent from a week earlier.
Meanwhile, the ruling Liberal Democratic Party leadership race, currently scheduled for Sep. 29, has boosted the market as potential candidates drum up performing economic measures against the COVID-19 pandemic fallout, Sengoku said.
Investors are now focusing on key U.S. economic data, including the manufacturing index and employment data for August on Wednesday and Friday, respectively, to ascertain business sentiment and find clues for future monetary policies, especially as other U.S. data have recently failed to meet market expectations, he added.
In the First Section, advancers outnumbered decliners 1,548 to 532, while 109 finished unchanged.
Industrial machinery makers turned higher after government data showed Wednesday that capital expenditure by Japanese companies in the April-June quarter grew an expectation-exceeding 5.3 percent from the previous year, the first rise in five quarters, brokers said.
Fanuc gained 2.1 percent, SMC climbed 1.1 percent, and Yaskawa Electric increased 2.8 percent.
Bridal-related issues advanced after reports Wednesday that Princess Mako, a niece of Emperor Naruhito, and her boyfriend Kei Komuro would marry by the end of the year.
IBJ, which operates marriage consultation services, soared 3.6 percent, while baby goods maker Pigeon went up 0.5 percent.
Trading volume on the main section dropped to 1,082.66 million shares from Tuesday's 1,235.24 million shares. Enditem
