Tokyo shares end higher

Tokyo stocks ended higher on Tuesday, extending Wall Street rallies as investors hoped for slower US rate hikes while shifting focus to corporate earnings.

The benchmark Nikkei 225 index added 1.02 per cent, or 275.38 points, to 27,250.28, while the broader Topix index advanced 1.06 per cent, or 19.95 points, at 1,907.14.

Global markets rallied as investors cheered a media report that said the Federal Reserve was leaning toward slowing down the pace of interest rate hikes in December.

Hopes for strong corporate earnings in the United States and Japan also lifted spirits, analysts said, as did political developments in Britain, where former finance minister Rishi Sunak was set to become prime minister.