TOKYO, Dec. 26 (Xinhua) -- Tokyo stocks closed higher on Thursday as investors opted to buy back a wide range of issues deemed oversold following the market's drop the previous day.

File photo: AP

The 225-issue Nikkei Stock Average gained 142.05 points, or 0.60 percent, from Wednesday to close the day at 23,924.92.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 9.78 points, or 0.57 percent, to finish at 1,731.20.

Buying got off to a reasonably bright start, local brokers said, with investors mainly motivated by the market's retreat the previous day, which allowed them to buy back issues oversold at reasonable valuations.

They added, however, that in later trade the market showed signs of turning as there were no fresh trading cues and many foreign and institutional investors were away for Christmas holidays, with a number of key overseas markets also closed.

"The rally was nothing more than a result of bargain-hunting, with no domestic or global factors in play," Shingo Ide, chief equity strategist at the NLI Research Institute, was quoted as saying.

Hiroyasu Mori of the investment strategy department at Okachi Securities, said, meanwhile, that the market's rise could be expected after the previous day's drop and investors were assuming that shares would rise henceforth.

"There were no major factors behind the rise and it was a natural rebound after a fall. Market players appear to be betting shares will rise after tomorrow, which is effectively the start of new year trade," Mori said.

Some issues offering high dividend yields found favor Thursday which was the last day for end-of-year payouts from firms who operate by the calendar year.

Among these, Kuraray rose 0.7 percent, while Yamaha Motor advanced 1.1 percent.

Cyclical issues and those heavily exposed to external factors also attracted buying, with Tokyo Electron gaining 1.2 percent, while Screen Holdings added 0.9 percent. Yaskawa Electric, meanwhile, ended the day 1.9 percent higher.

By the close of play, marine transportation, air transportation and precision instrument-linked issues comprised those that gained the most.

On the main section on Thursday, 821.86 million shares changed hands, rising from Wednesday's volume of 776.59 million shares.

The turnover came to 1,357.1 billion yen (12.38 billion U.S. dollars).