TOKYO, Feb. 14 (Xinhua) -- Japan's benchmark Nikkei stock index closed higher Tuesday as technology-linked issues followed their U.S. peers higher, but gains were capped as investors hit the sidelines to await U.S. inflation data that could inform the future course of interest rates.
The 225-issue Nikkei Stock Average added 175.45 points, or 0.64 percent, to close the day at 27,602.77.
The broader Topix index, meanwhile, gained 15.42 points, or 0.78 percent, to finish at 93.09.
Trading got off to a bright start, dealers here said, as the market mood was lifted by Wall Street's overnight rally.
They added that once buying ran its course, investors opted to secure profits in later trade and position themselves ahead of the U.S. consumer price index data for January to be released later in the day.
"Traders seemed to lock in gains in the afternoon as the outcome of the CPI will likely influence greatly how the market swings in the future," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.
Other experts concurred, with Kazuo Kamitani, a strategist at Nomura Securities quoted as saying, "Tonight we'll get the long-awaited U.S. CPI data, and it's almost certain to be a big driver of market direction, limiting potential upside ahead of the result."
"In the end, 27,700 for Nikkei was too heavy," Kamitani said.
In domestic news, meanwhile, market analysts here said that the Japanese government on Tuesday officially nominating Kazuo Ueda to parliament as its pick to become the next Bank of Japan (BOJ) chief, replacing incumbent Haruhiko Kuroda whose term ends in April, had little bearing on the market.
Despite Ueda having spent most of his career as an academic, they said, the 71-year-old was instrumental in introducing the BOJ's zero interest rate policy and quantitative easing measures.
The government also presented its picks for BOJ deputy governors to parliament, with Ryozo Himino, a former commissioner of the Financial Services Agency, and Shinichi Uchida, an executive director at the central bank, both getting the nod.
Providing the nominees are approved by both houses of parliament, controlled by the ruling Liberal Democratic Party (LDP), they will be appointed with five-year terms by Japanese Prime Minister and LDP leader Fumio Kishida, analysts said.
As for stocks finding favor during trading hours, tech issues advanced thanks to the Nasdaq's solid overnight performance, with Nikkei heavyweight Tokyo Electron, a semiconductor equipment maker, propping up the broader market rising 1.4 percent.
Silicon chip manufacturer Sumco was another notable gainer, rising 2.5 percent by the close.
Engineering firm Kajima climbed 5.4 percent after reporting solid earnings, while watchmaker Citizen Watch Co. surged 16.2 percent, after announcing a hefty stock buyout plan to eclipse that of its listed rivals.
Bucking the upward trend, however, recruit Holdings slumped 5.0 percent to become the Nikkei's biggest drag, after its earnings report for the April-December period missed investor expectations.
By the close of play, metal product, electric appliance and precision instrument issues comprised those that gained the most.
The turnover on the second trading day of the week came to 2,426.09 billion yen (18.36 billion U.S. dollars). ■