TOKYO, Oct. 21 (Xinhua) -- Tokyo stocks closed higher Wednesday on renewed hopes for an agreement to be reached on U.S. stimulus measures, with sentiment also lifted by some domestic firms upgrading forecasts ahead of earnings season.

The 225-issue Nikkei Stock Average added 72.42 points, or 0.31 percent, from Tuesday to close the day at 23,639.46.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 11.86 points, or 0.73 percent, to finish at 1,637.60.

Investor sentiment was buoyed by renewed hopes that U.S. lawmakers would reach an agreement on a coronavirus relief package for the hard-hit economy in time for the presidential election on Nov. 3, brokers here said.

They added that it was this optimism that helped lift Wall Street overnight, with the upbeat mood coming despite opposition to the stimulus deal from within the Republican Party although U.S. President Donald Trump had said he'd accept a relief bill composed by the Democrats.

"The market was also lifted by reports that U.S. President Donald Trump is willing to accept a coronavirus relief bill drafted by Democrats," Kenji Abe, chief strategist at Daiwa Securities Group Inc., was quoted as saying.

Adding to a reasonably upbeat market mood, strategists here pointed to some domestic firms like component maker Rohm upwardly revising their profit forecasts ahead of earnings season next week, as well as some upcoming solid trading cues that have been lacking of late.

"Market players are awaiting the upcoming earnings reports as well as the start of an extraordinary session of parliament next week for trading cues on Prime Minister Yoshihide Suga's push for digitalization in the economy," Kazuo Kamitani, senior associate at the investment research and investor services department of Nomura Securities Co., was quoted as saying.

By the close of play, iron and steel, mining and marine transportation-oriented issues comprised notable winners.

Rohm climbed 4.8 percent, after upgrading its earnings outlook owing to a recovery in automobile output, while Nojima Corp. jumped 7.3 percent, after upgrading its net profit outlook for the fiscal year ending in March 2021.

Takara Bio also found favor, jumping 5.4 percent, after announcing its expectations for solid earnings as its polymerase chain reaction (PCR) test-related products to detect the novel coronavirus continue to be in high demand amid resurgences of the virus in Europe and other countries.

ANA Holdings rose 1.7 percent, despite sources close to the matter saying it expects to log a record net loss in the region of 530 billion yen (5 billion U.S. dollars) for the business year through next March as the industry has been hammered by the global novel coronavirus pandemic.

Reports also stated that ANA will cut annual wages and bonuses, suspend unpopular routes, and sell unnecessary assets, in a bid to streamline its operations.

ANA will also, as part of its wholesale cost-cutting measures, reportedly retire half of its 60 wide-body jets due to a slump in demand.

Two Nikkei heavyweights weighed on the market however, with SoftBank Group and Fast Retailing slumping 0.7 percent and 1.4 percent respectively.

Issues that rose outpaced those that fell by 1,553 to 552 on the First section, while 75 ended the day unchanged.

On the main section on Wednesday, 943.31 million shares changed hands, rising from Tuesday's volume of 923.69 million shares.

The turnover on the third trading day of the week came to 1.871 trillion yen (17.845 billion U.S. dollars). Enditem

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