Tokyo's benchmark stock index rose sharply on Wednesday as the results of the US presidential election came in.

The Nikkei 225 ended the day up 1,005 points, or 2.6 percent, at 39,480.

It started climbing from the beginning of the morning session and had added more than 1,000 points by the close, as many traders predicted a win for Republican candidate Donald Trump.

The currency market reacted sharply as the dollar strengthened against the yen.

Forex traders also seemed to have priced in a victory for the former president.

Trump's promises of higher tariffs and tax cuts point to higher inflation, which would mean a stronger dollar.

The currency pair traded around 151 yen to the dollar in the morning before peaking at around the 154-yen mark early afternoon.

That decline encouraged investors to buy export-related shares.