Tokyo stocks have closed 0.56 per cent higher with market jitters eased by new US Federal Reserve chair Janet Yellen's promise of continuity in monetary policy.
The benchmark Nikkei-225 index rose 81.72 points to 14,800.06 on Wednesday, while the Topix index of all first-section shares gained 1.27 per cent, or 15.32 points, to 1,219.60.
Tokyo's rise came after the Dow Jones Industrial Average jumped 1.22 per cent to 15,994.77 on Tuesday as stocks reacted warmly to the new Fed chief's remarks.
"Yellen hit just the right note with the market, reassuring that there would be no major break with the existing policy, while remaining somewhat cautious," SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.
"How emerging markets handle ongoing US tapering is another matter, but for now the net impact on Japan shares should be positive."
In her first public comments on policy since becoming Fed chair at the beginning of this month, Yellen told Congress on Tuesday that the US economy was expected to grow this year and next at a moderate pace, despite some recent poor data.
That would keep the Fed on course to slowly taper its currently $65-billion-a-month stimulus program, a plan which has already driven interest rates higher and added to turmoil in emerging markets amid fears of capital flight.
She allowed that when the Federal Open Market Committee, the Fed's policy-making body, meets next month, it could weigh a pause to the taper if economic conditions show a significant deterioration.
"I expect a great deal of continuity in the FOMC's approach to monetary policy," she said.
In Tokyo share trading, SoftBank closed 0.19 per cent lower at Y7,782 before the mobile carrier announced its nine-month profit soared 58 per cent as iPhone sales surged, although third-quarter earnings declined.
Sony rose 3.70 per cent to Y1,765 after the leading Nikkei business daily said it had entered negotiations with Apple to double its supply of camera components for a new iPhone to be launched as early as next year.
Toyota gained 0.43 per cent to Y6,020, Canon added 1.19 per cent to Y3,046, while Nissan shares jumped 2.03 per cent to Y903 after Japan's number-two carmaker said after markets closed Monday that its nine-month net profit jumped 18.4 per cent. Tokyo markets were closed Tuesday for a national holiday.
In forex markets, the US dollar fetched Y102.50, against Y102.64 in New York on Tuesday.
