This file photo shows the Tokyo Stock Exchange. (Mainichi)

       TOKYO (Kyodo) -- Tokyo stocks ended sharply higher Friday, with the benchmark Nikkei gaining over 2 percent, on receding fears over the potential collapse of the debt-laden Chinese property developer Evergrande Group.

       The 225-issue Nikkei Stock Average ended up 609.41 points, or 2.06 percent, from Wednesday at 30,248.81. Japanese financial markets were closed Thursday for a national holiday.

       The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 47.20 points, or 2.31 percent, higher at 2,090.75.

       Every industry category gained ground, led by marine transportation, mining, and insurance issues.

       The U.S. dollar inched up into the mid-110 yen range in Tokyo, with risk appetite increased on diminishing concerns over Evergrande Group after its subsidiary said Wednesday it would make an interest payment on part of its domestic bonds, dealers said.

       The Nikkei index tracked a two-day rally on Wall Street, jumping over 600 points and retaking the 30,000 mark following the benchmark's slump earlier this week triggered by fears that the Chinese property giant could go into default.

       Sentiment was also supported after the results of the two-day U.S. Federal Reserve monetary policy meeting through Wednesday came mostly within the market consensus, with the central bank signaling it could begin scaling back a massive bond-buying program in November and complete tapering around the middle of next year.

       In addition, Fed Chairman Jerome Powell assuaged investor concerns over Evergrande Group in remarks Wednesday, noting the situation, which sent jitters across the global markets this week, seemed "very particular" to China.

       "Reports that the Chinese government ordered Evergrande Group to avoid a default also led to a sense of security, although concerns continue to weigh on investors amid a lack of an official statement (from the government)," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.

       The slide earlier this week provided investors an opportunity to cool off the rapid surge in stocks in recent weeks, he added.

       On the First Section, advancing issues outnumbered decliners 2,104 to 68, while 16 ended unchanged.

       Financial issues climbed after the yield on the benchmark 10-year U.S. Treasury on Thursday briefly rose to its highest level since July. Mitsubishi UFJ Financial Group advanced 26.8 yen, or 4.2 percent, to 668.3 yen, and Sumitomo Mitsui Financial Group gained 130 yen, or 3.3 percent, to 4,020 yen.

       Energy-related shares were also boosted after crude oil futures rose in New York trading for the third straight day. Oil explorer Inpex grew 27 yen, or 3.4 percent, to 818 yen, while refiner Eneos Holdings was up 6.8 yen, or 1.5 percent, at 463.6 yen.

       Bucking the upward trend, some drugstores met selling on concerns that the end to the COVID-19 state of emergency, which is likely to be lifted at the end of the month in Tokyo and 18 other prefectures, will reduce demand for goods to help prevent infections, brokers said.

       Sugi Holdings dropped 100 yen, or 1.2 percent, to 8,590 yen, and Tsuruha Holdings fell 270 yen, or 1.9 percent, to 14,010 yen.

       Trading volume on the main section rose to 1,425.37 million shares from Wednesday's 1,203.59 million shares.

       Font Size S M L Print Timeline 0