TOKYO: Tokyo shares closed higher Friday, tracking Wall Street gains reflecting optimism on the US economy and expectations that the Fed will not hike interest rates next week.

The benchmark Nikkei 225 index added 1.97 percent, or 623.90 points, to end at 32,265.17, while the broader Topix index rose 1.50 percent, or 32.82 points, to 2,224.32.

“The Japanese market started with gains backed by rallies on Wall Street,” Daiwa Securities said in a commentary, adding that foreign investors were actively buying Tokyo shares.

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Investors cheered after fresh US data showed first-time claims for unemployment benefits rose modestly to 261,000 last week, the highest level for more than a year and a half.

Global investors will now look to major central bank meetings next week, including the US Fed, the European Central Bank and the Bank of Japan, as well as a barrage of US data including inflation.

Many analysts believe the Bank of Japan will maintain its current easy money policy, but they will be looking for any hint of possible changes in the long run.

The dollar fetched 139.34 yen in Asian trade, against 138.89 yen in New York late Thursday.

Among major shares, Nintendo added 1.92 percent to 6,098 yen, Toyota rose 1.36 percent to 2,051.5 yen, and heavily weighted Fast Retailing, which operates the Uniqlo fashion brand, jumped 4.60 percent to 35,280 yen.

Pharmaceuticals also rallied, with Daiichi Sankyo climbing 3.57 percent to 4,909 yen, and Takeda Pharmaceutical advancing 1.25 percent to 4,537 yen.