TOKYO, Aug. 5 (Xinhua) -- Tokyo stocks rebounded on Tuesday as growing expectations of an early interest rate cut by the U.S. Federal Reserve buoyed investor sentiment.
The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 40,549.54, up 258.84 points or 0.64 percent, from the previous trading day.
Market optimism was driven by signs of a softening U.S. labor market, which led to increased speculation that the Fed may begin cutting rates as early as September.
Major Japanese stocks gained on the back of U.S. market strength, with SoftBank Group, TDK, and Fanuc among the top performers.
The broader TOPIX index also climbed, rising 20.34 points, or 0.70 percent to 2,936.54.
On the Tokyo Stock Exchange Prime Market, 1,154 stocks advanced, 412 declined, and 56 remained unchanged. ■