TOKYO, May 8 (Xinhua) -- Tokyo stocks closed higher Tuesday on overnight advances on Wall Street and companies here reporting solid earnings, but the market's upside was capped by caution ahead of U.S. President Donald Trump's decision on the Iran nuclear deal.
The 225-issue Nikkei Stock Average added 41.53 points, or 0.18 percent, from Monday to close the day at 22,508.69.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 6.64 points, or 0.37 percent, to finish at 1,779.82.
Market strategists here said that Wall Street's advance overnight encouraged buying in early trade, yet some investors opted to offload issues on the yen's appreciation against the U.S. dollar, which hurts exporters and dents market sentiment.
They added however, that some robust earnings reports from Japanese firms, lifted the market mood and saw some stocks gain traction.
Local brokers added that there was a sense of caution which capped the market's upside as investors took a wait-and-see approach ahead of Trump's decision on the Iran nuclear deal.
Analysts pointed out that if Trump reneges on the deal, then oil prices could spike which would impact companies' earnings.
By the close of play, fishery, agriculture and forestry, electric power and gas, and pharmaceutical-oriented issues comprised those that gained the most, and rising issues outpaced falling ones by 1,373 to 632 on the First Section, while 78 ended the day unchanged.
On the main section on Tuesday, 1,655.80 million shares changed hands, rising from Monday's volume of 1,475.96 million shares.
The turnover on the second trading day of the week came to 2,642.7 billion yen (24.25 billion U.S. dollars).