TOKYO, April 26 (Xinhua) -- Tokyo stocks closed higher Monday eventually reversing early losses as hopes for robust domestic corporate earnings reports outweighed concerns over new COVID-19 restrictions in place in Tokyo and other major urban areas.

The 225-issue Nikkei Stock Average gained 105.60 points, or 0.36 percent, from Friday to close the day at 29,126.23.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 3.17 points, or 0.17 percent, to finish at 1,918.15.

Local dealers said that trade was largely directionless and fell into negative territory early on, but on hopes for solid earnings reports from companies who closed their books at the end of the business year in March, some bellwethers found favor.

In addition, they said that as the country's vaccination campaign gathers steam, companies may upgrade their earnings outlooks if it looks as though the new virus infection rate and death toll start to lower commensurate with the number of people inoculated.

"Investors expected business results would be solid, while progress in coronavirus vaccine inoculations in Japan could prod companies to upgrade their forecasts," Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, was quoted as saying.

Other market analysts here pointed out that transportation issues were snapped-up following their recent declines, on expectations that the government's third state of emergency for Tokyo, Osaka and two other prefectures will have a positive effect on reducing the recent surge in COVID-19 cases.

"Those sectors hit by the coronavirus are getting bought back as there are hopes that the coronavirus infections will decline now that the government has declared an emergency," Takashi Hiroki, chief strategist at Monex Securities, was quoted as saying.

As for the currency market, the euro rose against the U.S. dollar on hopes for a recovery from the pandemic in European countries and propelled by April's solid purchasing managers' index for the eurozone, the data of which was released last week.

As a result, the dollar was pegged in the upper 107 yen range owing to the euro's rise and at 5 p.m. the dollar was quoted at 107.71-72 yen compared with 107.81-91 yen in New York and 107.91-92 yen at 5 p.m. on Friday in Tokyo.

The euro, for its part, fetched 1.2096-2099 dollars and 130.30-34 yen against 1.2091-2101 dollars and 130.49-59 yen in New York and 1.2053-2055 dollars and 130.07-11 yen in late Friday afternoon trade in Tokyo.

By the close of play, air transportation, land transportation, and iron and steel issues comprised those that gained the most.

Among transportation issues finding favor, ANA Holdings climbed 5.8 percent, following its forecast on Friday of a smaller net loss for the business year ended in March than previously thought.

Japan Airlines jumped 4.6 percent, after reports it plans to make China's Spring Airlines Co. a subsidiary on expectations of the tourism industry recovering when the pandemic is under control and demand for flights increase.

Central Japan Railway advanced 4.7 percent, while West Japan Railway leapt 5.2 percent. East Japan Railway, meanwhile, ended the day 3.4 percent higher.

Issues gaining ground on investors' hopes for robust earnings included Advantest rising 2.5 percent and industrial robotics maker Fanuc gaining 0.7 percent. Office equipment maker Canon, meanwhile, closed 2.5 percent higher.

Telecommunications behemoth NTT retreated into negative territory, however, losing about 1 percent, following reports it plans to form an alliance with tech firm Fujitsu.

Issues that fell outpaced those that rose by 1,139 to 942 on the First Section, while 109 ended the day unchanged.

On the main section on Monday, 974.77 million shares changed hands, rising from Friday's volume of 955.01 million shares.

The turnover on the first trading day of the week came to 2,087.40 billion yen (19.35 billion U.S. dollars). Enditem

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