TOKYO: Tokyo stocks rallied more than two percent Friday following a strong lead from Wall Street and as fears eased over troubled Chinese property giant Evergrande.

The benchmark Nikkei 225 index surged 2.06 percent, or 609.41 points, to 30,248.81 as investors returned from a midweek break, while the broader Topix index advanced 2.31 percent, or 47.20 points, to 2,090.75.

Markets were given a healthy lead, with all three main New York indexes closing well up for a second straight day.

"The Nikkei began the day with a sharp rise following surges of US shares on Japan's day off," Okasan Online Securities said.

Tokyo stocks open higher extending US rally

Advances were seen across the board, with gains seen in 96 percent of shares on the first section of the Tokyo Stock Exchange, according to SMBC Nikko Securities.

Investors are feeling more confident about the situation facing embattled Chinese property giant Evergrande after it agreed a plan to repay interest on a domestic bond due Thursday, though there was no news on its payment to foreign bondholders, which was expected on the same day.

Players also cheered as the head of the US Federal Reserve, Jerome Powell, said policymakers were close to that start of tightening monetary policy, with November or December seen as the likely months.

Among major shares, Sony Group rose 5.18 percent to 13,000 yen, while Toyota added 2.85 percent to 10,100 yen.

SoftBank Group firmed 2.76 percent to 6,627 yen and Nippon Steel climbed 3.74 percent to 2,107 yen.

Japan's top maritime shipping firm Nippon Yusen Kabushiki Kaisha jumped 8.06 percent to 10,990 yen, while its smaller rival Kawasaki Kisen Kaisha advanced 10.99 percent to 8,380 yen.

The dollar stood at 110.52 yen against 110.26 yen in New York late Thursday.