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Tokyo stocks closed sharply higher Tuesday as investors took heart from the lifting of Japan's coronavirus state of emergency and hopes for the gradual reopening of the world's third-largest economy.

The benchmark Nikkei 225 index ended up 2.55 percent, or 529.52 points, at 21,271.17, while the broader Topix index was up 2.17 percent, or 32.53 points, at 1,534.73 at the close.