TOKYO (AFP) - Japanese share prices closed up 1.88 percent on Friday, mirroring gains on Wall Street as investors eyed prospects for an economic recovery.

The benchmark Nikkei-225 index climbed 171.29 points to 9,265.02, recovering some of the previous day's 2.64 percent loss. The broader Topix index of all first section shares advanced 18.99 points, or 2.20 percent, to 881.65.

"The market was solid although the rebound wasn't big enough to cover Thursday's drop," said Kazuhiro Takahashi, equity information chief at Daiwa Securities SMBC.

"Mizuho shares were firm despite reports on its new share issuance, giving a sense of security in the market."

After the close Mizuho Financial, Japan's number two bank, confirmed reports that it would sell new shares worth up to 600 billion yen, after losing almost as much money in the year to March.

Investors were relieved that Japan's core machinery orders fell less than expected.

With the earnings season drawing to a close, investors will turn their focus to economic indicators, including Japan's second-quarter GDP figures due next week, Mizuho Securities analyst Yukio Takahashi told Dow Jones Newswires.

Financial issues rose sharply in tandem with their US peers. Mitsubishi UFJ Financial gained 4.3 percent to 613 yen and Nomura added 5.3 percent to 679 yen.

Mizuho Financial Group climbed 2.2 percent to 237 yen.

Sony jumped 7.1 percent to 2,570 yen after reporting a smaller annual loss than it had forecast.

"We are upbeat on Sony's strategy to prioritise profits over volumes, but its guidance confirms that conditions are not improving," one CLSA analyst wrote in a note.

Sanyo Electric rose 6.4 percent to 199 yen after predicting that it would break even on a net basis this fiscal year.