TOKYO: Tokyo stocks closed 1.66 percent higher Thursday after Wall Street's gains amid hopes that EU leaders would forge an agreement on recapitalising banks in a bid to contain the eurozone debt crisis.
The Nikkei index at the Tokyo Stock Exchange added 139.04 points to 8,522.02. The Topix index of all first section shares rose 1.46 percent or 10.61 points to 736.86.
The Nikkei became buoyant after a rise in crude and precious metal prices overnight, while markets posted strong gains on expectations European leaders will support their banks to prevent the eurozone debt crisis from spreading.
Germany called on its EU partners to recapitalise the banking sector.
In the United States the ISM index on the US service economy in September fell slightly to 53 from 53.3 the previous month, but was still in growth territory, while its business activity sub-index rose 1.5 points to 57.1.
And private payrolls firm ADP reported that US companies added 91,000 jobs last month, more than analysts had predicted.
"In addition to talks of putting in place a system of backstops for European banks, US macroeconomic data have generally been solid, leading to an improvement in market sentiment," said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.
Players are shifting their focus to the European Central Bank's policy meeting later in the day, added Hiroyuki Fukunaga, CEO of Investrust.
If the central bank leaves its policy rate unchanged as expected, it may trigger euro buybacks, which could lift exporter shares, he added.
"People will also be scrutinising the statement to see if the ECB takes an aggressive tone about cutting rates down the road," he said.
The news that Apple co-founder and chairman Steve Jobs had died Wednesday following a long battle with pancreatic cancer left many investors focused on the future of the tech giant.
In Tokyo, iPhone carrier Softbank dropped 0.30 percent to 2,306 yen, while the second-largest carrier KDDI, which is to start offering the iPhone 4S when it launches next week, added 1.26 percent to 560,000 yen.
Parts supplier Sharp rose 3.45 percent 663 yen and component maker Ibiden surged 4.77 percent to 1,623 yen.
Exporters largely gained in Tokyo. Sony jumped 4.70 percent to 1,470 and Toyota Motor rose 0.83 percent to 2,538.
A rise in oil and commodity prices boosted Japanese trading houses. Mitsui & Co. added 2.24 percent to 1,049 yen, while Mitsubishi Corp. jumped 2.64 percent to 1,434 yen.
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