TOKYO, Jan. 17 (Xinhua) -- Tokyo stocks closed higher Monday as investors snapped-up bargains following the market's fall late last week, with chip-oriented issues rallying and following their U.S. peers higher overnight.

The 225-issue Nikkei Stock Average gained 209.24 points, or 0.74 percent, from Friday to close the day at 28,333.52.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, rose 9.05 points, or 0.46 percent, to finish at 1,986.71.

Local brokers said that following the Nikkei's drop on Friday to its lowest level since late December, investors were keen to scoop up bargains, with tech issues here finding favor following their rally on Wall Street overnight.

"Over-sold growth stocks are being bought back," Naoki Fujiwara, a fund manager at Shinkin Asset Management Co., was quoted as saying.

"At the same time, the shift from growth stocks to value stocks is also continuing," Fujiwara noted.

They added that energy issues also found traction following crude oil futures rising in New York trading late last week.

Gains were capped, however, by concerns over Japan's rapid surge in COVID-19 cases, with fears virus-related restrictions could impact economic output and report Tokyo may be put under a quasi-state of emergency to help mitigate the spread dampening sentiment.

Local dealers noted remarks made by Chief Cabinet Secretary Hirokazu Matsuno Monday.

"The number of new cases is surging at an unprecedented speed, not just in the metropolitan areas, but elsewhere too. The government will swiftly consider declaring the quasi-emergency if requested," he said.

On Sunday, the metropolitan government reported more than 4,000 new infection cases and the almost 20 percent hospital occupancy rate is the local government's criterion to request the central government declare stricter antiviral measures.

The Greater Tokyo Area potentially facing the quasi-state of an emergency comprises the three neighboring prefectures of Saitama, Chiba, and Kanagawa, with the area home to around 30 percent of Japan's total population.

Along with chip issues, major advancers included mining, rubber product, and pulp and paper issues, and issues that fell outpaced those that rose by 1,120 to 962 on the First Section, while 103 ended the day unchanged.

Among chip-related issues gaining ground following the Nasdaq index bouncing back Friday from a two-day loosing streak, Tokyo Electron gained 0.4 percent, while Advantest added 0.6 percent.

Taiyo Yuden, for its part, closed the day 1.4 percent higher.

Energy-oriented stocks posting gains included Idemitsu Kosan edging up 0.3 percent, while oil exploration giant Inpex ended the day 3.1 percent higher.

Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of casual clothing stores, helped prop up the market, advancing 1.7 percent on the back of solid earnings reported recently.

Fellow heavyweight SoftBank Group rose 0.6 percent, while Toyota Motor accelerated 1.4 percent by the close.

Restaurant-linked stocks weighed on the market, however, over concerns of falling patronage and possible restrictions due to the rampant spread of COVID-19, with Watami declining 0.8, while restaurant chain operator Torikizoku Holdings fell 1.9 percent.

On the main section on Monday 995.87 million shares changed hands, dropping from Friday's volume of 1,408.15 million shares.

The turnover on the first trading day of the week came to 2,317.86 billion yen (20.25 billion U.S. dollars).