TOKYO: Tokyo stocks closed higher on Thursday, tracking gains on Wall Street on hopes that the pace of the US Federal Reserve's rate hikes would be slower than expected.
The benchmark Nikkei 225 index closed up 0.70 percent or 184.24 points at 26,577.27 while the broader Topix index rose 1.18 percent or 21.86 points to 1,881.80.
The dollar fetched 115.62 yen in Asia, against 115.51 yen on Wednesday in New York.
US central bank chief Jerome Powell repeated the need for increasing interest rates to ease inflation, as the US battles consumer prices that are climbing at the fastest pace in four decades, as well as soaring oil.
But at the same time, Powell said he favours raising the benchmark borrowing rate by a patient quarter-point at the central bank's meeting this month, although not entirely ruling out the possibility of more aggressive moves.
"Following rallies in US shares, the Nikkei 225 was led by purchases," strategist Mutsumi Kanamori of Daiwa Securities said in a commentary.
However, investors are increasingly cautious "ahead of ceasefire talks between Ukraine and Russia" expected later in the day, she added.
Among major shares in Tokyo, Toyota ended up 0.42 percent at 2,047 yen.
The world's top-selling automaker announced Thursday that it would halt operations at its only factory in Russia due to "supply chain disruptions" linked to Moscow's invasion of Ukraine.
Honda edged up 0.27 percent to 3,365 yen, after it said it has suspended all exports to Russia "because of challenges around logistics and finance" due to the Ukraine crisis.
Among others, Sony Group rallied 1.42 percent to 11,755 yen, Panasonic ended up 0.57 percent at 1,148.5 yen and Nippon Steel gained 1.56 percent to 2,181.5 yen.
Japan Airlines ended up 1.47 percent at 2,204 yen and ANA Holdings was up 1.06 percent at 2,425.5 yen despite announcing the cancellation of several flights over the situation in Ukraine.
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