Tokyo stocks bounced back on Wednesday, as selling triggered by coronavirus fears abated following an overnight rally in US equities.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 163.69 points, or 0.71 pct, to end at 23,379.40. On Tuesday, the key market gauge lost 127.80 points.

The TOPIX index of all TSE first-section issues closed up 7.67 points, or 0.45 pct, at 1,699.95, after falling 10.29 points the previous day.

The Tokyo market got off to a higher start, after the Dow Jones industrial average and other major US stock indexes rallied on Tuesday from the previous day's drops attributed to a spread of the deadly virus, brokers said.

But the Nikkei and TOPIX lost steam soon and briefly fell into negative territory in midmorning trading, weighed down by selling to lock in profits.

The market headed up later and stayed on the positive side for the rest of the session, helped by a media report that the US government has decided against suspending flights to and from China, brokers said.

JIJI Press/AFP