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

       TOKYO (Kyodo) -- Tokyo stocks ended slightly higher, reversing earlier losses led by auto shares, including Toyota Motor, as persistent hopes for stimulus under a new prime minister led to last-minute buying after big rallies last week.

       The 225-issue Nikkei Stock Average ended up 65.53 points, or 0.22 percent, from Friday at 30,447.37. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 6.06 points, or 0.29 percent, lower at 2,097.71.

       Gainers were led by iron and steel, oil and coal product and bank issues.

       The U.S. dollar inched up to the lower 110 yen zone after moving narrowly in the upper 109 yen range, as investors sold the perceived safe-haven yen after a rebound in Tokyo stocks improved investors' risk appetite, dealers said.

       North Korea's successful test-firing of a new long-range cruise missile over the weekend, according to the state-run Korean Central News Agency, had limited impact on the currency market, they said.

       At 5 p.m., the dollar fetched 110.08-09 yen compared with 109.86-96 yen in New York and 109.94-96 yen in Tokyo at 5 p.m. Friday.

       The euro was quoted at $1.1786-1787 and 129.74-78 yen against $1.1806-1816 and 129.76-86 yen in New York and $1.1842-1843 and 130.19-23 yen in Tokyo late Friday afternoon.

       The bellwether 10-year Japanese government bond was untraded Monday as investors sat on the sidelines to await the U.S. consumer price index for August to be released on Tuesday. The 10-year bond yield ended at 0.040 percent Friday.

       Shares moved in negative territory for most of the day, as investors locked in gains after the Nikkei closed Friday at its highest level since Feb. 16, brokers said.

       But positive market sentiment persisted amid hopes that the successor to Prime Minister Yoshihide Suga would compile a fresh economic relief package to win popularity after Suga said earlier this month he will not run in the ruling Liberal Democratic Party's presidential race, brokers said.

       The LDP leader serves as prime minister as the party controls the House of Representatives, and a general election will be held this fall after the LDP presidential election.

       "There was a sense of overheating in the market after recent sharp rises, but bullish sentiment remained among retail investors, and foreign investors are also starting to buy Japanese stocks," said Chihiro Ota, assistant general manager of investment research at SMBC Nikko Securities Inc.

       Gains were limited by Toyota's announcement Friday it would cut its global production outlook, triggering selling in some car and parts makers, brokers said.

       The automaker lost 164 yen, or 1.6 percent, to 9,795 yen, after saying it slashed its global output outlook for the current fiscal year through March by about 300,000 units to around 9 million vehicles due to the spread of COVID-19 and a semiconductor crunch.

       Toyota's announcement fueled fears about supply issues for other automakers, as Toyota was considered as having weathered the impact of the coronavirus pandemic and the chip crunch relatively well, brokers said.

       Among other automakers, Honda Motor fell 44 yen, or 1.3 percent, to 3,387 yen, Mitsubishi Motors declined 3 yen, or 1.0 percent, to 284 yen, and Nissan Motor sagged 6.50 yen, or 1.1 percent, to 565.10 yen.

       But Mitsui High-tec, a manufacturer of in-vehicle motor cores used in hybrids and electric vehicles, surged 1,500 yen, or 21.2 percent, to its daily limit high of 8,580 yen. The electrical machinery maker revised upward on Friday its earnings forecast for the year through January 2022 on stronger-than-expected parts demand for electrified cars.

       Renesas Electronics, a major maker of semiconductors used in cars, jumped 60 yen, or 4.4 percent, to 1,430 yen as Toyota's announcement heightened expectations that strong demand for its chips will continue.

       On the First Section, advancing issues outnumbered decliners 1,534 to 554, while 101 ended unchanged.

       Trading volume on the main section fell to 1,135.44 million shares from Friday's 1,486.00 million shares.

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