TOKYO, Aug. 17 (Xinhua) -- Japan's benchmark Nikkei stock index closed above the psychologically important 29,000 line Wednesday for the first time in more that seven months, following Wall Street's rise on the back of solid earnings and eased economic concerns.
The 225-issue Nikkei Stock Average added 353.86 points, or 1.23 percent, from Tuesday to close at 29,222.77, marking its highest closing level since Jan. 5.
The broader Topix index, meanwhile, gained 25.03 points, or 1.26 percent, to finish at 2,006.99.
Local dealers said that Wall Street's strong showing overnight as a result of solid corporate earnings from U.S. retailers like Walmart set a positive mood here.
"Strong U.S. equities lifted investor sentiment. Investors responded to the upbeat earnings of U.S. retailers," Takatoshi Itoshima, a strategist at Pictet Asset Management Japan, was quoted as saying.
They added that signs of robust consumption helped ease fears about the health of the U.S. economy, aided by data released Tuesday reversing concerns about U.S. factory output, amid broader woes over rising U.S. inflation and the U.S. Federal Reserve's aggressive monetary policy.
"The earnings showed that consumption remains strong in the United States, further easing investors' concerns about an economic slowdown there," Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co., said.
By the close of play, marine transportation, transportation equipment, and insurance issues comprised those that gained the most on the Prime Market.
Issues that rose outpaced those that fell by 1,445 to 335, while 58 ended the day unchanged.
Nikkei heavyweights found favor with Uniqlo clothing store owner Fast Retailing climbing 2.8 percent and lifting the broader market, while Daikin Industries was a notable winner closing 2 percent higher.
Nippon Steel jumped 2.4 percent, on hopes for increased earnings, while Tokyo Electric Power Holdings rose 3.7 percent, on reports it may be able to restart one of its idled power plants.
Exporters advanced on the yen's retreat, with Honda Motor accelerating 2.8 percent, while Toyota leapt 2.9 percent. Subaru also ended in positive territory, closing 1.8 percent higher.
On the Prime Market on Wednesday, 1,135.29 million shares changed hands, rising from Tuesday's volume of 969.65 million shares.
The turnover on the third trading day of the week came to 2,867.14 billion yen (21.27 billion U.S. dollars). ■