TOKYO, April 8 (Xinhua) -- Tokyo stocks closed slightly higher on Friday as market participants bought in plummeting shares following the Nikkei index's sharp fall over the past two trading days.
The 225-issue Nikkei Stock Average closed up 97.23 points, or 0.36 percent, from Thursday at 26,985.80.
The broader Topix index ended 3.89 points, or 0.21 percent, higher at 1,896.79.
On the top-tier Prime Market, gainers were led by precision instrument, information and communication, and oil and coal product issues.
Tokyo stocks started the trading day higher, in the wake of overnight gains on Wall Street as new applications for unemployment benefits filed last week in the United States decreased to their lowest level in over 53 years, according to the U.S. Labor Department.
The stocks were additionally boosted by dip-buying following the Nikkei index's sharp plunge of nearly 900 points over the past two days, according to analysts.
However, shares did temporarily drop into negative territory before moving without direction in the afternoon, dragged by concerns over aggressive monetary tightening by the U.S. Federal Reserve.
Yutaka Miura, senior technical analyst at Mizuho Securities Co. said that market players took a wait-and-see stance ahead of the release of the U.S. consumer price index for March next week, which may stimulate the Fed to accelerate its aggressive stance if inflation is higher than expected.
Among Prime Market issues, advancing issues outnumbered declining ones 959 to 823, while 57 finished the day unchanged.
Toyota Motor lost 3.4 percent, after media reported Thursday that the Japanese automaker may be forced to pay some 1.5 billion U.S. dollars in compensation to Australian customers who were sold cars with faulty diesel engine filters following its loss in a class action lawsuit.
Seven & i Holdings shed 3.4 percent, after the convenience store operator's earnings results in the year through February published Thursday failed to meet market expectations.
Toshiba rose 1.9 percent, with the Japanese conglomerate announcing Thursday that it would halt its plan to split into two companies and consider other options including taking the firm private.
Nikon gained 7.5 percent, as the precision instrument maker said Thursday it would buy back its shares, resulting in enhanced shareholder returns.
Trading volume on the Prime Market rose to 1,270.96 million shares compared to Thursday's 1,188.11 million.
The Tokyo bourse on Monday introduced the Prime, Standard and Growth markets to replace the four former trading segments -- First Section, Second Section, Mothers and Jasdaq. ■