TOKYO: Tokyo stocks closed higher on Monday, boosted by gains in Chinese shares as investors picked up bargains.

The benchmark Nikkei 225 index shed earlier losses to end up 1.60 percent, or 449.26 points, to 28,498.20 yen. The broader Topix index rose 1.77 percent, or 34.73 points, to 1,996.58.

"Supported by the stability of Chinese shares, the Nikkei index rebounded from the losses seen last week," said Okasan Online Securities.

Investors have high hopes that new Prime Minister Fumio Kishida, who appeared in parliament Monday, will unleash fresh pandemic stimulus as he prepares for a general election on October 31.

Japanese media reported on Sunday that Kishida said he does not plan to change the financial income tax for the time being, a relief for market players.

The dollar stood at 112.70 yen in Asian trade, firmer than the 112.22 yen seen on Friday in New York.

A cheaper yen is good for Japanese exporters as it makes their products more competitive abroad while inflating profits when repatriated.

In Tokyo trading, Panasonic soared 6.66 percent to 1,360 yen while Sony rose 4.42 percent to 12,385 yen.

Automakers were higher with Nissan jumping 5.31 percent to 564.4 yen, Toyota climbing 3.32 percent to 1,987 yen and Honda advancing 1.86 percent to 3,433 yen.

SoftBank Group gained 4.87 percent to 6,416 yen while Uniqlo operator Fast Retailing was up 1.43 percent to 73,520 yen.