TOKYO, Oct. 21 (Xinhua) -- Tokyo stocks extended rally on Tuesday, driven by strong overnight gains on Wall Street and receding political uncertainty in Japan.
The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed up 130.56 points, or 0.27 percent, at 49,316.06, approaching the psychologically important 50,000 mark.
The Dow Jones Industrial Average rose 515 points, or 1.11 percent, to close at 46,706, helping lift Japanese equities at the open.
Japanese stocks have also been buoyed by expectations of expansionary fiscal and monetary policy under the newly elected Prime Minister Sanae Takaichi.
However, after Takaichi's election was finalized in the afternoon, the index gave back much of its gains as some short-term investors moved to lock in profits.
The broader Topix also ended higher, up 1.05 points, or 0.03 percent, to close at 3,249.50.
On the Tokyo Stock Exchange Prime Section, gainers totaled 751, while 799 declined and 65 were unchanged. ■
