Tokyo stocks close higher on cheaper yen

Tokyo stocks closed higher on Wednesday helped by a cheaper yen against the dollar.

The benchmark Nikkei 225 index gained 0.43 percent or 96.83 points to close at 22,794.19, while the broader Topix index was up 0.35 percent or 6.16 points at 1,751.21.

The dollar changed hands at 113.05 yen in Asian trade, up from 112.84 yen in New York and 112.40 yen on Tuesday.

"A cheaper yen, prompted by Fed Chairman Powell's congressional testimony, is promoting purchases of exporters," Okasan Online Securities said in a commentary.

Upbeat about the US economy, Powell began two days of congressional testimony on Tuesday by indicating the central bank would continue to raise rates gradually.

The comments sent the dollar up against its major peers and saw global stocks rally.

Traders said even though concerns over friction caused by US protectionist policies remain, the greenback may rise further given interest rate gaps with its peers.

In Tokyo, exporters were higher with Toyota rising 1.35 percent to 7,473 yen, Panasonic gaining 0.62 percent to 1,452 yen and Olympus ending up 0.90 percent at 4,450 yen.