TOKYO (Kyodo) -- Tokyo stocks rose Tuesday, supported by optimism over Japanese companies' earnings after the recent releases of solid results, but trading was limited amid caution before the U.S. presidential election next week.

The 225-issue Nikkei Stock Average ended up 298.15 points, or 0.77 percent, from Monday at 38,903.68. The broader Topix index finished 24.24 points, or 0.91 percent, higher at 2,682.02.

On the top-tier Prime Market, gainers were led by bank, securities house and consumer credit issues.

The U.S. dollar briefly weakened to the upper 152 yen range in Tokyo on selling after a surge the previous day, as the defeat of Japan's ruling coalition in Sunday's election sent the yen sharply lower.

At 5 p.m., the dollar fetched 153.16-18 yen, compared with 153.24-34 yen in New York and 153.33-35 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.0809-0811 and 165.56-60 yen against $1.0806-0816 and 165.67-77 yen in New York and $1.0803-0804 and 165.65-69 yen in Tokyo late Monday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 0.970 percent, unchanged from Monday's close.

On the stock market, the Nikkei index started lower as investors moved to lock in gains after Monday's sharp rise, while the downside was limited by buying after Wall Street advances overnight.

The benchmark later reversed course and stayed higher for the rest of the day as recent solid earnings from some companies raised hopes for a further rise in Japanese equities, brokers said.

Analysts said political uncertainty eased as Prime Minister Shigeru Ishiba seeks to cooperate with opposition parties such as the Democratic Party for the People after his ruling Liberal Democratic Party and its coalition partner lost their majority in the election.

"There was a sense of relief at this moment, as the government of Prime Minister Ishiba is seen as continuing, although his party is only expected to collaborate partially with the DPP," said Kazuo Kamitani, a strategist in the investment content department of Nomura Securities Co.

But considering the unclear political path in the longer term, the market's imminent focus is on the outcome of upcoming earnings results in Japan and the U.S. presidential election on Nov. 5, he added.