Mumbai, Aug. 10 -- Japanese equity markets closed sharply higher on Monday, with the Nikkei 225 rising 2.08% and the broader Topix index gaining 0.63%. Market sentiment was supported by gains on Wall Street after weaker-than-expected US employment data reduced concerns about a near-term interest rate hike by the US Federal Reserve.

Investors also continued to monitor geopolitical developments in the Middle East. While the US indicated that a potential agreement with Iran could be close, Iran denied reports of direct negotiations, keeping geopolitical uncertainty in focus.

On the domestic front, Japan's current account surplus narrowed in June. Strong exports of AI-related electronic products were offset by higher imports, particularly c...