Tokyo stocks closed sharply higher Tuesday, with investor sentiment bolstered by the yen's retreat against the U.S dollar.

The 225-issue Nikkei Stock Average surged 531.04 points, or 2.61 percent, from Friday to close the day at 20,864.21.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 33.20 points, or 2.16 percent, to finish at 1,572.60.

Textile and apparel, machinery, and warehousing and harbor transportation service-linked issues comprised those that gained the most by the close of play.