Tokyo stocks closed higher Friday on easing concerns about rises in U.S. Treasury yields and the Japanese government's approval of the COVID-19 vaccines developed by Moderna Inc. and AstraZeneca Plc.

The 225-issue Nikkei Stock Average ended up 219.58 points, or 0.78 percent, from Thursday at 28,317.83. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 8.77 points, or 0.46 percent, higher at 1,904.69.

Gainers were led by precision instrument, service, and information and communication issues.

The U.S. dollar hovered in the upper 108 yen range, weighed on by a fall in U.S. long-term yields as views that the Federal Reserve could bring forward stimulus tapering sooner have faded, dealers said.

Tokyo stocks extended their earlier gains in the afternoon as sentiment was also improved after favorable labor data prompted a rebound in U.S. shares overnight.

"Global stock markets had been swung by the moves of U.S. long-term yields," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co. "An overnight fall in the yields boosted the market."

A halt in a recent plunge of Bitcoin also underpinned the market, given that hedge funds' sell-off of the largest cryptocurrency had sparked speculation they would sell other risk assets including equities, he said.

Adding to the positive mood, Japan formally approved two more COVID-19 vaccines to help speed up its sluggish inoculation drive.

"The progress in vaccinations renewed hopes for normalization of (domestic) economic activities," said Makoto Sengoku, senior equity market analyst at Tokai Tokyo Research Institute.

On the First Section, advancing issues outnumbered decliners 1,076 to 1,009, while 107 ended unchanged.

Technology issues gained ground tracking their U.S. peers overnight.

Chip equipment makers Tokyo Electron advanced 600 yen, or 1.3 percent, to 46,470 yen and Screen Holdings climbed 120 yen, or 1.3 percent, to 9,600 yen. Electric device maker Alps Alpine grew 8 yen, or 0.7 percent, to 1,164 yen.

Trading volume on the main section rose to 1,037.96 million shares from Thursday's 994.65 million shares.

==Kyodo

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