TOKYO, March 17 (Xinhua) -- Tokyo stocks closed sharply higher Thursday, with the benchmark Nikkei surging over 3 percent, as the brighter U.S. economic outlook shown by its central bank and a strong dollar reaching a six-year high against the yen fueled the investor confidence.
The 225-issue Nikkei Stock Average closed up 890.88 points, or 3.46 percent, from Wednesday at 26,652.89, ending above the 26,000 mark for the first time since March 3.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 45.76 points, or 2.47 percent, higher at 1,899.01.
Gainers were led by precision instrument, machinery and electric appliance issues.
The U.S. dollar was traded in the upper 118 yen range after reaching the 119 yen line overnight in New York for the first time since February 2016.
It was boosted on U.S. Treasury yields after the Federal Reserve said Wednesday it raised key interest rate for the first time since 2018 and signaled six more rate increases this year to tame high inflation.
The Nikkei index jumped from the opening, briefly gaining nearly 1,000 points, as the outcome of the Fed's two-day meeting through Wednesday reduced some uncertainty over the future course of the central bank's policy.
Investors said market confidence was especially positive after Fed Chairman Jerome Powell said at a press conference that the U.S. economy is "very strong" and "well-positioned to withstand tighter monetary policy."
The magnitude-7.4 earthquake that hit northeastern Japan on Wednesday night put some issues under pressure.
East Japan Railway lost 1.8 percent after it partially suspended bullet train services in the region due to the derailment of a train.
But the earthquake showed limited overall impact on the market.
Honda Motor rose 2.9 percent, while Toyota Motor gained 2.3 percent, and Isuzu Motors increased 4.4 percent.
Technology issues soared on the strength of their U.S. peers. Industrial robot maker Fanuc surged 7.1 percent, and semiconductor maker Screen Holdings jumped 6.2 percent.
On the First Section, advancing issues outnumbered declining ones 1,872 to 250, while 58 finished the day unchanged.
Trading volume on the main section increased to 1,474.19 million shares from Wednesday's 1,339.86 million. ■