Tokyo stocks closed sharply higher Oct. 28, reversing earlier losses that sent the key Nikkei index falling below the 7,000 line for the first time in 26 years as investor jitters were eased by a weaker yen relative to the dollar and firmness in some Asian shares.

The 225-issue Nikkei average briefly falls below the 7,000 line in the morning of Oct. 28 for the first time since October 1982, KYODO PHOT

The 225-issue Nikkei average gained 459.02 points, or 6.41 percent, from Oct. 27 to 7,621.92, after falling to a low of 6,994.90 in midmorning. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 37.57 points, or 5.03 percent, to 784.03.

Investor sentiment was also lifted by an announcement earlier Oct. 28 by Financial Services Minister Shoichi Nakagawa that Japan will start banning a type of stock short selling, effective Oct. 28, ahead of the originally scheduled Nov. 4, to help calm domestic stock markets, brokers said.

In the morning, the Nikkei, which closed at the lowest level in 26 years Oct. 27, briefly traded under 7,000 amid investor worries about weakness in Japan's financial and corporate sectors along with the global economic slowdown.

The index entered the 6,000 zone for the first time since Oct. 6, 1982, when it closed at 6,974.35.

The Tokyo stocks' drop came on the heels of the U.S. stocks' plunge overnight due to recession fears, which sent the 30-issue Dow Jones Industrial Average to the lowest level since April 2003.

Most of the 33 sectors on the TSE declined, led by real estate, banking and securities issues. Among the major gainers were chemical, metal product and air transport issues.