Tokyo stocks reversed early losses and rose marginally Tuesday on optimism over Japan's economic recovery, even as profit-taking prevailed after a sharp rally on Monday.

The 225-issue Nikkei Stock Average gained 27.89 points, or 0.17 percent, to end at 16,385.96.

The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange rose 2.03 points, or 0.12 percent, to 1,651. 35.

A total of 928 issues advanced against 646 declining, with 124 shares ending the day unchanged.

Softbank was the most heavily traded issue by value, rising 125 yen to 2,310 yen. Nippon Steel was the day's volume leader.

Trading volume on the TSE's main section increased to 1,765.95 million shares from Monday's 1,659.35 million shares.

The TSE's Second Section index rose 19.76 points, or 0.46 percent, to 4,355.43 on a volume of 57.42 million shares. In Osaka, the near-term September Nikkei 225 index futures contract rose 60 points to 16,410.

Source: Xinhua