Japanese shares gained on Tuesday, tracking an overnight surge on Wall Street after the US Federal Reserve widened its corporate bond purchasing program to support financial markets.

The benchmark Nikkei average advanced 3.32% to 22,244.96 by the midday break, bouncing back from a near three-week low hit on Monday.

The Nikkei futures extended gains by another 0.5% during the midday recess, after a Bloomberg report economy said US President Donald Trump is considering $1 trillion infrastructure spending to bolster the economy, and the Bank of Japan maintained its policy stance.

Shares of highly cyclical shippers, steelmakers and automakers were the top three performing sector subindexes.

All three major U.S. stock indexes closed higher on Monday after the Fed announced changes to its corporate bond buying program, applying an indexing approach to its secondary market corporate credit facility.

While investors remained cautious amid resurging cases of coronavirus infections, the Fed's move boosted risk sentiment.

On the Nikkei index, there were 222 advancers against three decliners.

Shippers and steelmakers were the biggest advancers among the Tokyo Stock Exchange's 33 industry subindexes, both notching up 5.54%.

Auto maker shares were strong, with Yamaha Motor Co Ltd surging 7.65%, Mazda Motor up 7.61% and Mitsubishi Motor gaining 7.77%.
In the broader market, Topix gained 2.83% to 1,574.12.

Park 24 Co Ltd dipped 7.86% after the car park operator reported its first deficit since listing, hugely hit by the stay-at-home trend due to the coronavirus outbreak.

Reuters