TOKYO: Tokyo shares gained 1.32 percent by the close Wednesday as bargain hunting emerged in late trade, while a weakening yen also helped boost the market.
The benchmark Nikkei 225 index closed up 183.16 points to 14,050.16, while the broader Topix index of all first-section shares rose 1.23 percent, or 14.19 points, to 1,171.34.
"While there was no decisive selling factor in the market, players bought on dips targeting companies showing a brisk performance," said Katsuhiro Kondo, a dealer with Tokai Tokyo Securities.
Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, added that "Japanese stocks were still in the buying-zone".
Nishi cited improved economic data in the US, Europe and China for buoying investor sentiment, and a Japanese media report that said Tokyo was mulling corporate tax cuts to help offset the impact of an expected hike in the country's sales tax.
A doubling of Japan's consumption tax to 10 percent by 2015 is seen as crucial to chopping the country's enormous debt, the worst among industrialised nations at more than twice the size of the economy.
Trading volume, however, was thin with many market players off for Japan's summer Obon holiday.
"Quite trading is expected continue for the rest of the week or even next week," Tokai's Kondo said.
Sony rose 1.67 percent to 2,000 yen, Toyota added 1.26 percent to 6,410 yen, while Uniqlo clothing chain operator Fast Retailing gained 1.68 percent to 33,200 yen.
On currency markets, the dollar changed hands at 98.35 yen Wednesday afternoon, rebounding from 98.22 yen in New York on Tuesday. (AFP)
