TOKYO, Jan. 24 (Xinhua) -- Tokyo stocks reversed early losses to close higher Monday as U.S. stock futures rising encouraged investors to pick up bargains although cautious trading capped gains ahead of the U.S. Federal Reserve's policy meeting this week.
The 225-issue Nikkei Stock Average added 66.11 points, or 0.24 percent, from Friday to close the day at 27,588.37.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, edged up 2.69 points, or 0.14 percent, to finish at 1,929.87.
Trading got off to a downbeat start, local brokers said, as investors took their cues from U.S. stocks falling late last week.
But investor sentiment turned positive as U.S. stock futures rose, with Nasdaq futures increasing 0.8 percent, which gave tech issues here a boost, they added.
"There was demand as long as stocks were cheap because the economic outlook remains positive. Also the gains in U.S. futures supported investor sentiment," Jun Morita, general manager of the research department at Chibagin Asset Management, was quoted as saying.
Market strategists added, however, that investors remained cautious ahead of the Fed's two-day policy setting meeting as they try to predict the timing as to when and how many times the Fed will hike its rates this year.
"Investors remained wary over a further hawkish move by the Fed as they gauge the timing of potential monetary policy changes," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.
A circumspect mood was also underpinned by concerns for the outlook of Japan's economy amid a rapid increase in COVID-19 cases nationwide leading to as many as 30 out of Japan's 47 prefectures possibly being placed under emergency measures as soon as Tuesday, brokers here pointed to local reports as saying.
By the close of play, mining, marine transportation issues and bank issues comprised those that gained the most, and issues that rose outpaced those that declined by 1,527 to 582 on the First Section, while 75 ended the day unchanged.
Tech issues rose in twine with U.S. stock futures, with Tokyo Electron gaining 1.6 percent, while Canon rose 2.0 percent, helped by reports of solid earnings for 2022.
Fellow camera maker Nikon also found favor, meanwhile, closing 2.8 percent higher.
Energy issues gained commensurate with rising prices for crude oil and shipping firms were bought back after recent retreats.
Oil exploration giant Inpex leapt 4.6 percent, while Mitsui O.S.K. Lines advanced 3.9 percent, Nippon Yusen rose 3.5 percent and Kawasaki Kisen climbed 6.2 percent by the close.
On the main section on Monday, 1,080.96 million shares changed hands, dropping from Friday's volume of 1,235.00 million shares.
The turnover on the first trading day of the week came to 2,644.76 billion yen (23.28 billion U.S. dollars). ■