Tokyo stocks closed higher Tuesday, with the benchmark Nikkei stock index finishing at more than a one month high, as a solid lead from Wall Street overnight set a positive tone with sentiment bolstered by the yen's retreat against the U.S. dollar.

The 225-issue Nikkei Stock Average gained 230.85 points, or 1.18 percent, from Monday to close the day at 19,776.62, marking its highest close since Aug. 8.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 15.19 points, or 0.94 percent, to finish at 1,627.45.

The majority of industry categories closed in positive territory, with insurance, securities house and nonferrous metal-linked issues comprising those that gained the most by the close of play.

Brokers said the market took its cues from Wall Street's overnight rally which was partly buoyed by insurance losses caused by Hurricane Irma being smaller than initial projections.

Along with insurance-related stocks advancing, traders also noted that financial issues were solid as with the broader global picture, on buybacks triggered by U.S. and Japanese bond yields rising.

"Japanese financial stocks joined the global financial rallies as there are many factors which benefit them today," said Nobuhiko Kuramochi, a strategist at Mizuho Securities.

Exporters also fared well, market players said, owing to a comparatively soft yen compared to the U.S. dollar, which boosts their profit margins and competitiveness in overseas markets.

Among financial issues, Sumitomo Mitsui Financial Group added 1.9 percent to 4,104 yen and T&D Holdings jumped 3.6 percent to 1,521 yen.

Exporters finding favor included Toyota who accelerated 1.03 percent to 6,361 yen, while Nissan rose 1.40 percent to 1,115 yen. Nintendo, meanwhile, gained 3.27 percent to close the day at 37,880 yen.

Issues connected to companies supplying Apple Inc. found traction Tuesday ahead of the expected release of the iPhone 8 later in the day.

Electric component maker TDK advanced 2.9 percent to 7,380 yen, while Japan Display gained 3.7 percent to finish at 194 yen.

Issues that made notable gains on individual news included Japan Post, which added 3.93 percent to 1,373 yen, after the government here said on Monday it would sell 12 billion U.S. dollars worth of Japan Post Holdings Co Ltd.

The government intends a continuation of its plan to raise cash for reconstruction to be spent in areas hit by the 2011 earthquake and tsunami disaster.

On the First Section on Tuesday, rising issues beat declining ones by 1,503 to 447, with 76 ending the day unchanged.

On the main section trading volume totaled 1,654.76 million shares, rising from Monday's volume of 1,498.64 million shares.

The turnover on the second trading day of the week came to 2,225.4 billion yen (20.31 billion U.S. dollars).