Tokyo stocks close higher

Tokyo shares closed higher Tuesday, rebounding sharply after investors were cheered in part by a surge in US stock futures.

The benchmark Nikkei 225 index rose 1.84 per cent, or 475.09 points, to end at 26,246.31 while the broader Topix index added 2.05 per cent, or 37.26 points, at 1,856.20.

The dollar fetched 135.10 yen, against 135.08 yen in London. The US market was closed on Monday for a holiday.

Tokyo stocks rebounded after European shares were bid higher across the board, "prompting short sellers to buy back their short positions", Okasan Online Securities said in a note. 

The yen's fall to 135 against the dollar also sparked rallies in major exporters like high-tech stocks. 

Adding to the upward momentum is the fact that US stock index futures are leaning heavily in favour of buying, which "contributed to the improvement in the market sentiment", the
brokerage said.