The key Nikkei-225 index closed up 103.55 points at 16,332.45. "The recordrise in the Nasdaq boosted Tokyo stocks in the morning with buying focusedon high-tech issues," said Nikko Securities senior analyst Kazue Mayuzumi.New York's technology-heavy Nasdaq index soared by a record 7.94 per cent to3,459.48 points and the Dow Jones Industrial Average moved up 2.21 per centto 10,527.13 on Tuesday.

"Given recent volatile moves in New York, investors were relieved by thegains and chased up Japanese shares," said Seiji Adachi, market analyst atDaiwa Research Institute. The Topix benchmark of all first-section issueswas up 4.41 points at 1,522.84. Turnover on the major board totaled anestimated 609 million shares against Tuesday's 489.2 million shares. Butmarket sentiment was soured in the afternoon as major Internet investorsSoftbank Corp and Hikari Tsushin Inc came under selling pressure, brokerssaid. Softbank took a knock on reports, confirmed after the market closed,that its consortium had failed to strike a deal with the government to buythe nationalised Nippon Credit Bank Ltd, brokers said.

Hikari Tsushin, also a a mobile telephone retail chain, was hit by thecollapse of its major sales agent on the southern island of Kyushu, AdvanceInternational Co. Ltd. Nikko's Mayuzumi said.