TOKYO: Japanese shares settled higher on Tuesday, as a strong finish on the Nasdaq overnight boosted heavyweight local technology stocks, although worries about a sluggish economic recovery because of a slow vaccine rollout capped gains.

The Nikkei share average rose 0.67% to close at 28,553.98, while the broader Topix inched up 0.34% to 1,919.52.

Chip-related shares advanced, with Tokyo Electron jumping 1.76% and Advantest rising 2.35%.

Other index heavyweights Fast Retailing gained 0.93% and SoftBank Group advanced 0.54%.

Retailers declined, with J.Front Retailing losing 1.88%, Takashimaya falling 1.45% and Isetan Mitsukoshi Holdings slipping 2.05%.

Airliners also fell, with ANA Holdings and Japan Airlines losing 0.80% each.

The largest percentage gainer on the Nikkei was Konami Holdings, up 4.29%, followed by Kobe Steel, gaining 3.85%, and Japan Steel Works, up 3.63%.

T&D Holdings Inc, down 3.1%, was the largest percentage loser on the index, followed by NH Foods, losing 2.96%, and Tosoh Corp, down by 2.77%.

“High-priced stocks have lifted the Japanese market after a strong gain in major US indexes,” said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities.