The 225-issue Nikkei average jumped 162.66 points, or 0.81 percent, to 20,230.41, its highest finish since Aug. 18, 2015. On Monday, the key market gauge climbed 124.49 points.

The TOPIX index of all first-section issues ended up 11.18 points, or 0.70 percent, at 1,617.25, after rising 10.03 points the previous day.

Tokyo stocks attracted purchases as investors took heart from the dollar's rise above 111.50 yen after William Dudley, president of the US Federal Reserve Bank of New York, on Monday showed confidence in the US economy's outlook, brokers said.

The Tokyo market was also boosted by US equities' firmness that sent the Dow Jones industrial average rising to a fresh record high on Monday, they said. (Jiji Press)