TOKYO, Jan. 9 (Xinhua) -- Tokyo stocks finished higher Tuesday with the benchmark Nikkei stock index closing at a fresh 26-year high as market sentiment here was buoyed by the Nasdaq Composite Index rising overnight.

The 225-issue Nikkei Stock Average gained 135.46 points, or 0.57 percent, from Friday to close the day at at 23,849.99, marking its highest closing level since Nov. 15, 1991.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 8.95 points, or 0.48 percent, to finish at 1,889.29.

Market analysts here said that solid performances by overseas bourses recently underpinned the market, with high-tech issues finding particular favor, mirroring gains made in the United States, which sent the tech-heavy Nasdaq Composite Index higher overnight.

But brokers added that gains narrowed in later trade on the yen's rise following the central bank's latest bond purchasing operation.

A strong yen against its major counterparts hurts exporter issues in particular, as it reduces their competitiveness in overseas markets and dents profit outlooks and yields when they are repatriated.

Investors became more circumspect as the yen advanced against the U.S. dollar, and opted for profits when the Nikkei rose close to the psychologically important 24,000 line, market strategists noted.

Electric appliance, real estate and securities-oriented stocks comprised those that gained the most by the close of play, and rising issues beat falling ones by 1,185 to 795 on the First Section, with 83 ending the day unchanged.

On the main section on Tuesday, 1,663.41 million shares changed hands, falling from Friday's volume of 1,681.44 million shares.

The turnover on the first trading day of the week came to 3,111.2 billion yen (27.62 billion U.S. dollars).

Markets here were closed on Monday for a national holiday.