Tokyo stocks closed higher Tuesday, with the benchmark Nikkei stock index finishing at a more than two-year high, as investors sentiment was bolstered by Wall Street's advance and a weaker yen.

The 225-issue Nikkei Stock Average added 389.88 points, or 1.96 percent, from Friday to close the day at 20,299.38, marking its highest closing level since August 2015.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 28.94 points, or 1.77 percent, to finish at 1,667.88.

Insurance, marine transportation and bank-related issues comprised those that gained the most by the close of play.

Markets here were closed on Monday for a national holiday.