People walk by an electronic stock board of a securities firm in Tokyo, on Sept. 1, 2021. (AP Photo/Koji Sasahara)

       TOKYO (Kyodo) -- Tokyo stocks ended higher Wednesday on hopes for the normalization of domestic economic activity as Japan's nationwide toll of COVID-19 infections appears to have hit a peak.

       The 225-issue Nikkei Stock Average ended up 361.48 points, or 1.29 percent, from Tuesday at 28,451.02. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 20.09 points, or 1.02 percent, higher at 1,980.79.

       Gainers were led by pulp and paper, air transportation, and securities house issues.

       The U.S. dollar inched up to the upper 110 yen range following a rise in U.S. Treasury yields overnight, dealers said.

       The Nikkei benchmark ended at its highest since July 14, supported by a weakening yen, while a recent decline in the number of coronavirus infections in Japan also lifted market sentiment, brokers said.

       "The overall decline of nationwide COVID-19 cases may lead to a reduction in patients with severe symptoms, which is currently at an all-time high, and allow the country to move towards the normalization of economic conditions," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.

       A total of 17,713 new coronavirus cases were reported across the country Tuesday, down from over 20,000 infections that have been logged over the past couple of weeks. In Tokyo, the seven-day rolling average of the cases fell 24.1 percent from the previous week.

       Meanwhile, the ruling Liberal Democratic Party leadership race, currently scheduled for Sep. 29, has bolstered the market as potential candidates tout implementing economic measures against the coronavirus pandemic fallout, Sengoku said.

       Investors are now focusing on key U.S. economic data, including the manufacturing index and employment data for August on Wednesday and Friday, respectively, to confirm business sentiment and find clues for future monetary policies, especially as other U.S. data have recently fallen below market expectations, he added.

       On the First Section, advancing issues outnumbered decliners 1,548 to 532, while 109 ended unchanged.

       Industrial machinery makers were higher after government data showed Wednesday that capital spending by Japanese companies in the April-June quarter grew a larger-than-expected 5.3 percent from a year earlier, the first increase in five quarters, brokers said.

       Fanuc climbed 500 yen, or 2.1 percent, to 24,490 yen, SMC gained 780 yen, or 1.1 percent, to 71,290 yen, and Yaskawa Electric advanced 150 yen, or 2.8 percent, to 5,530 yen.

       Bridal-related issues rose after reports Wednesday that Princess Mako, a niece of Emperor Naruhito, and her boyfriend Kei Komuro would marry by the end of the year.

       IBJ, which operates marriage consultation services, jumped 35 yen, or 3.6 percent, to 1,011 yen, while baby goods maker Pigeon rose 15 yen, or 0.5 percent, to 3,200 yen.

       Trading volume on the main section fell to 1,082.66 million shares from Tuesday's 1,235.24 million shares.

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