Japan's Nikkei 225 index closed at a more than 31-year high on Tuesday, led by cyclical stocks, as progress in the promotion of vaccines in Japan boosted hopes of an economic recovery.

The Nikkei 225 index closed up 0.73 per cent at 30670.10, its highest level since august 1990. The East Stock Exchange Index rose 1.01% to 2118.87.

"the difference between today and yesterday is that today's rally is driven by a rebound in US stocks," said Seiichi Suzuki, chief equity analyst at Tokai Tokyo Research Institute. "when economically sensitive (cyclical) stocks lead the US market, it is good for the Japanese market, because Japan is not like GAFA (Alphabet Inc-CL C), Apple Inc, Facebook Inc and Amazon.Com Inc) such high-growth stocks, so the market can not take advantage of the earnings of such companies. "

The S & P 500 ended a five-day losing streak overnight, with value stocks leading the market higher, so stocks will benefit the most from the economic recovery.

Among the 33 sub-indices on the Tokyo Stock Exchange, the insurance sector led the gains, up 3.67%, followed by the shipping sector, up 2.14%.

Refiners' shares rose 2.05 per cent after oil prices rose to a six-week high.

As vaccination levels in Japan are expected to reach those in the United States and Europe, hopes of reopening the economy have also boosted market sentiment. More than 50% of the Japanese population has been vaccinated, the Japanese government said on Tuesday.

Technology magnate Softbank Corp.Group and Advantest share prices retroactive overnight NASDAQThe downward trend was 0.49% and 0.18% respectively.

Tokyo Ocean Holdings rose 6.2%, making it the best performing stock in the Nikkei index, while Showa Electric (Showa Denko) rose 6.19% and Z Holdings Corp Z Holdings (JZ) rose 5.24%.

Konami Holdings fell 2.79%, making it the worst performer in the Nikkei index, while Pacific Metals (Pacific Metals) fell 2.72% and Tepco fell 2.72%.The company (Tokyo Electric Power Company Holdings) fell 2.27%.