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Strong US durable goods contributed to the increase as automobile companies on the index recorded improvements.
Among those that did well yesterday were Toyota, Honda and Nissan, which rose 1.1 per cent, 2.6 per cent and 3.3 per cent respectively.
This rise comes after the announcement that orders for cars in July soared by 11.5 per cent, marking the greatest increase seen in the last eight years.
However, the resignation of Apple's chief executive officer Steve Jobs led to a decline in the country's tech stocks, with firms such as Softbank declining in popularity among those involved in stock market trading.
The rally of the Nikkei comes after the market fell yesterday as Moody's Investor Service downgraded the nation's sovereign debt to an AA3 rating yesterday.
Posted by Greg Secker
