Nikkei 225 rallies on earnings, weak Yen, nudges near all-time high

Tokyo stocks surged Tuesday following another record high for the Dow on Wall Street, with exporters boosted by a cheaper yen.

The benchmark Nikkei 225 index jumped 2.89 percent, or 1,066.55 points, to close at 37,963.97 yen, while the broader Topix index advanced 2.12 percent, or 54.15 points, to end at 2,612.03.

Monday was a public holiday in Japan, and over the long weekend "the US market kept up strong sentiment based on a sense of relief over prospects for the US economy", IwaiCosmo Securities said.

"A weakening of the yen also supported" the market, the brokerage said.

A weaker currency helps exporters as it inflates their repatriated profits.

In New York, the Dow Jones Industrial Average finished up 0.3 percent at a new all-time record.

The broad-based S&P 500 slipped 0.1 percent, edging down from a record, while the tech-rich Nasdaq Composite Index declined 0.3 percent.

Investors are awaiting key inflation data due later in the day that could influence US monetary policy, analysts added.

The dollar fetched 149.46 yen in Asian trade, against 149.39 yen in New York late Monday.

SoftBank Group soared 6.27 percent to 8,492 yen after its US-listed chip unit Arm extended rallies.

Chip-making equipment manufacturer Tokyo Electron rocketed 13.33 percent to 33,720 yen after it revised up its full-year sales and profit forecasts.

Sony Group ended up 3.51 percent to 14,735 yen, Toyota climbed 4.00 percent to 3,456 yen and ship builder Hitachi Zosen jumped 4.15 percent to 1,079 yen.