Tokyo stocks close higher as yen loses value

Tokyo stocks closed higher on Wednesday with investors emboldened by a cheaper yen and the five-day winning streak notched by the US Dow.

The benchmark Nikkei 225 index gained 1.23 per cent, or 353.86 points, to end at 29,222.77, while the broader Topix index advanced 1.26 per cent, or 25.03 points, to 2,006.99.

The dollar fetched 134.48 yen, against 134.21 yen in New York and around 133 yen in Tokyo on Tuesday.

Overnight on Wall Street, the Dow Jones Industrial Average gained 0.7 per cent, extending its rallies to a fifth straight day. 

This, coupled with the yen's depreciation, "left (the Japanese market) in a risk-on mood", Okasan Online Securities said.

Also, "the Nikkei was led higher by futures, surpassing the 29,000-yen point and rising to its highest level since the beginning of the year", the brokerage added.

SoftBank Group was up 0.92 per cent at 5,802 yen after a report said the US-based Elliott Management had sold nearly all its remaining SoftBank shares after previously investing up to $2.5 billion.