TOKYO, Jan 19 ­— Tokyo’s benchmark Nikkei index closed up nearly 1.4 per cent today as investors bought on dips following two days of profit-taking.

The Nikkei 225 index rose 1.39 per cent, or 391.25 points, to 28,633.46, while the broader Topix index gained 0.56 per cent, or 10.35 points to 1,855.84.

"Shares rebounded easily today following two days of declines, which showed the current strength of the market,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"Sentiment is likely to remain strong for the time being as hopes for stimulus policies are still high,” he told AFP.

Investors were watching headlines linked to Japan’s vaccination schedule, analysts said, after Taro Kono, a high-profile minister for administrative and regulatory reforms, was tasked with coordinating the vaccine rollout.

"The market is focusing on how smoothly vaccines can be distributed in Japan,” Horiuchi said.

So far, no vaccines have been approved in Japan, which expects to begin its innoculation programme around late February.

The dollar fetched ¥103.99 (RM4.05) in Asian afternoon trade, against ¥103.65 in London yesterday.

In Tokyo, chip-linked shares were higher on strong demand for semiconductors. Chip-making equipment maker Tokyo Electron rallied 2.10 per cent to ¥44,130, and testing equipment maker Advantest was up 4.21 per cent at ¥9,140.

Automakers were higher on hopes for US measures to support the industry. Nissan jumped 3.91 per cent to ¥544.3 and Honda rose 1.68 per cent to 2,833.5 with Toyota up 0.94 per cent at ¥7,708.

Tyre makers were also among gainers. Bridgestone jumped 3.34 per cent to ¥4,053 with Yokohama Rubber up 2.15 per cent at ¥1,612 on bargain-hunting. — AFP