Tokyo stocks close higher echoing global rally

TOKYO: Tokyo stocks closed higher on Wednesday, tracking rallies on Wall Street and in line with advances in other Asian markets, but rises were weighed by profit-taking ahead of a national holiday.

The benchmark Nikkei 225 index gained 0.48 percent, or 106.67 points, to 22,523.15. The broader Topix index was up 0.34 percent, or 5.95 points, at 1,777.08.

The rally was encouraged by gains on foreign bourses, but "there were few fresh sources to seek further rises in prices ahead of a national holiday," said Okasan Online Securities in a commentary.

Investors were focusing on individual shares seen as relatively cheap amid favourable external conditions such as sound economic growth in major economies including the United States, analysts said.

The dollar fetched 112.16 yen in early Asian trade, down slightly from 112.44 yen in New York late Tuesday.

Coating maker Nippon Paint dropped 4.45 percent to 3,535 yen before its trade was suspended following a report that it submitted an all-cash takeover bid for Axalta Coating Systems of the US.

Subaru closed up 1.12 percent at 3,670 yen after a report said it will start selling electric cars as early as 2021.

Sony gained 1.34 percent to 5,287 yen following a report it will boost AI development in a joint venture with Japanese and US firms.

Trading firm Mitsubishi Corp was up 0.19 percent at 2,770.5 yen after a report that it plans to create an investment fund focusing on transportation infrastructure this month.