Investor sentiment was supported by gains. Wall Street Last night and comments last week from the Bank of Japan that showed a dovish bias.
The Nikkei index ended trading today up 0.57 percent at 37,940.59, its highest closing level since Sept. 3. The index rose about 1.9 percent to 38,427.15 earlier in the session, exceeding the 38,000-point level for the first time since Sept. 4.
Japanese markets were closed on Monday for a holiday.
U.S. stocks closed modestly higher on Monday as investors assessed market trends in the week following the Federal Reserve’s interest rate cut.
The Bank of Japan kept interest rates unchanged on Friday and Governor Kazuo Ueda said the bank could wait for some time to monitor the fallout from global economic uncertainty, meaning it was in no rush to raise borrowing costs further.
Ueda reiterated on Tuesday that the bank is in no rush to raise rates. Interest rates once again.
Electronic components maker TDK jumped 4.21 percent, providing the biggest boost to the Nikkei.
Chip-making equipment maker Tokyo Electron erased early gains to fall 0.93 percent, the biggest drag on the index.
The broader Topix index rose 0.54 percent to 2,656.73, with Hitachi jumping 5 percent to provide the biggest boost to the index.
