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

       TOKYO (Kyodo) -- Tokyo stocks ended higher Friday, with the Nikkei index briefly rising over 2 percent, as fears over a U.S. government default receded after the Senate agreed on a short-term deal to increase its debt limit.

       The 225-issue Nikkei Stock Average ended up 370.73 points, or 1.34 percent, from Thursday at 28,048.94. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 22.23 points, or 1.15 percent, higher at 1,961.85.

       Gainers were led by mining, warehousing and harbor transportation service, and electric appliance issues.

       The U.S. dollar climbed in the upper 111 yen range, supported by rising expectations for a recovery in the country's labor market after a drop in weekly U.S. jobless claims, dealers said.

       At 5 p.m., the dollar fetched 111.95-96 yen compared with 111.58-68 yen in New York and 111.29-30 yen in Tokyo at 5 p.m. Thursday.

       The euro was quoted at $1.1547-1548 and 129.27-31 yen against $1.1549-1559 and 128.87-97 yen in New York and $1.1568-1570 and 128.74-78 yen in Tokyo late Thursday afternoon.

       The yield on the benchmark 10-year Japanese government bond inched up 0.010 percentage point from Thursday's close to 0.080 percent following a rise in U.S. Treasury yields overnight, while investors also sold the safe-haven debt as risk appetite increased following the rise in Tokyo stocks. Bond yields move inversely to prices.

       Stocks were sharply higher from the outset, with the Nikkei quickly retaking the 28,000 line and briefly rising over 600 points, helped by gains of Asian counterparts.

       The market tracked overnight advances on Wall Street after Senate Majority Leader Chuck Schumer said Thursday the U.S. debt ceiling had been lifted through early December, staving off a potential economic downturn stemming from a default.

       "Investors were relieved by the development in the United States as risk appetite returned, although some refrained from chasing the upside in the afternoon ahead of U.S. employment data for September due out later in the day," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.

       The recent U.S. debt crisis had seen confrontations in Congress over raising the government's debt ceiling, with U.S. Treasury Secretary Janet Yellen noting that the country was set to reach its borrowing limit by Oct. 18.

       While sentiment was buoyed by the agreement on the U.S. debt limit, the significant gains were also a reaction to recent sharp losses in the Tokyo market, he added.

       The market's reaction to a powerful quake that struck Tokyo and its vicinity the previous night, the strongest experienced in the capital in a decade, was limited, brokers said.

       On the First Section, advancing issues outnumbered decliners 1,746 to 358, while 79 ended unchanged.

       Exporters were higher after the yen weakened overnight against the U.S. dollar. Electronics manufacturers Sony Group surged 165 yen, or 1.4 percent, to 11,860 yen and Panasonic rose 18.5 yen, or 1.5 percent, to 1,275.0 yen.

       Among automakers, Suzuki Motor advanced 117 yen, or 2.5 percent, to 4,825 yen and Mazda Motor gained 20 yen, or 2.2 percent, to 930 yen.

       Trading volume on the main section rose to 1,356.77 million shares from Thursday's 1,330.87 million shares.

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