TOKYO, Feb 9 ― Tokyo stocks closed higher today helped by a better-than-expected profit reported by Toyota and other companies, with investors turning their attention to US inflation data due later this week.

The benchmark Nikkei 225 index ended up 1.08 per cent, or 295.35 points, at 27,579.87, while the broader Topix index was up 0.94 per cent, or 18.16 points, at 1,952.22.

Toyota logged a forecast-beating net profit of US$6.8 billion (RM28.5 billion) for the three months to December, even as a global chip crunch and a pandemic-driven parts shortage forced production cuts.

The Japanese auto giant, which kept its crown as the world's top-selling carmaker in 2021, left its annual net profit forecast unchanged but slightly lowered its full-year vehicle sales and production targets.

"Toyota shares gained after the earnings report as market expectations on its earnings had been at low levels,” Daiwa Securities said in a commentary.

Toyota shares closed up 0.94 per cent at ¥2,317.5.

Market players are also waiting for the US consumer price index due tomorrow, with investors cautious on active trading, analysts said.

Investment giant SoftBank Group soared 5.85 per cent to close at ¥5,612 after it said yesterday that its sale of chip group Arm to Nvidia had collapsed. Investors digested the news ahead of today's session because the announcement had been widely reported beforehand, analysts said.

Nissan rallied 5.67 per cent to ¥626.6 after it hiked its annual net profit forecast again yesterday on strong interim results.

Honda was up 0.35 per cent at ¥3,421 ahead of its earnings reports. After the market close, Honda said it has revised up its full-year sales and profit forecasts.

Toshiba slipped 2.01 per cent to ¥4,620 after S&P said its ratings of the tech conglomerate "may come under heavy pressure if the company's revised reorganisation plan fails to win shareholder support”.

Earlier this week, Toshiba announced plans to split into two, revising an earlier proposal to spin off two segments.

The dollar fetched ¥115.49 in Asian trade, against ¥115.53 in New York late yesterday. ― AFP