Tokyo stocks end higher

Tokyo stocks ended higher on Tuesday, extending rallies on Wall Street, where the dollar retreated and markets began to look beyond the US midterm elections.

The benchmark Nikkei 225 index was up 1.25 per cent, or 344.47 points, to end at 27,872.11, while the broader Topix index rose 1.21 per cent, or 23.47 points, to 1,957.56. The dollar fetched 146.66 yen, against 146.68 yen in New York late Monday.

US stocks rose overnight for a second straight session ahead of the midterm elections.

The democratic lock on Congress is likely coming to an end. A divided government means we won't be seeing a big fiscal stimulus response next year when the economy is in a recession, Edward Moya, senior market analyst at OANDA, said.