TOKYO: Tokyo stocks closed higher Wednesday led by rallies in chip-linked and other tech shares on hopes of sound earnings and US stimulus measures.

The benchmark Nikkei 225 ended up 1.04 percent, or 292.25 points, at 28,456.59, while the broader Topix index was up 0.35 percent, or 6.46 points, at 1,864.40.

The market was supported by bargain-hunting after profit-taking in early trade, with chip-linked shares in particular trading higher.

Political turmoil in the United States and an expansion of Japan's virus state of emergency are weighing on the market, said Hideyuki Ishiguro, senior strategist at Daiwa Securities, "but hopes for US stimulus measures under incoming president Joe Biden are supporting it."

Chip-linked shares were supported by strong readings in a key US semiconductor index and expectations for Taiwanese chip-maker TSMC's earnings report due Thursday, he added.

Chip-testing equipment maker Advantest surged 5.45 percent to 8,710 yen, while chip-making equipment manufacturer Tokyo Electron climbed 5.27 percent to 42,950 yen.

Among automakers, Toyota dropped for a second day, trading down 0.58 percent at 7,846 yen as difficulties in chip procurement leads automakers, including the Japanese giant, to cut output in North America.

Honda, however, was up 1.14 percent at 2,921 yen after dipping 1.55 percent in the previous session, while Nissan was down 2.23 percent at 533.8 yen.

The dollar fetched 103.68 yen in Asian trade, against 103.76 yen in New York and 104.27 yen in Tokyo late Tuesday.