The benchmark Nikkei stock index gained nearly 138 points, or 1%, to close at 13,846.90. On Monday, the average had fallen nearly 89 points, or 0.64%. Share prices gained only in a late surge on futures-led buying. Trading was thin as many participants have taken off for the New Year holidays.

The US dollar was lower against the yen Tuesday in thin year-end trading, as investors took profits and some grew bearish about the outlook for the US economy. The dollar bought 115.42 yen at mid afternoon, down 0.70 yen from late Monday in Tokyo and also below its late New York level of 115.90 yen overnight.