Nikkei hits 3-week high on Wall Street strength, dovish BOJ

Japan's Nikkei share average hit a three-week high on Tuesday as markets resumed trade after a long holiday weekend, with Wall Street's overnight gains and the Bank of Japan's dovish comments lifting sentiment.

The Nikkei .N225 was up 1.5 per cent at 38,293.34, as of 0024 GMT, after rising to 38,324.07, its highest since September 3, earlier in the day. Japanese markets were closed on Monday for a holiday.

US stocks closed modestly higher on Monday as investors assessed whether a trend would develop in the week following the Federal Reserve's rate cut. 

The BOJ kept interest rates steady on Friday and its governor said the central bank could afford to spend time eyeing the fallout from global economic uncertainties, signalling it was in no rush to raise borrowing costs further.

Chip-related stocks led the Nikkei 's gains, with Advantest 6857.T and Tokyo Electron 8035.T rising 4 per cent and 2.7 per cent, respectively.

Uniqlo-brand owner Fast Retailing 9983.T rose 1.25 per cent.

The broader Topix .was up 1.02 per cent at 2,669.34, with Toyota Motor gaining 0.72 per cent to become the biggest boost.