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TOKYO, Jan. 7 (Xinhua) -- Tokyo stocks were higher early Thursday afternoon, with the benchmark Nikkei stock index extending gains having reached its highest intraday level since August 1990 on hopes of additional stimulus in the United States.

As of 12:45 p.m., the 225-issue Nikkei Stock Average added 458.65 points from Wednesday to 27,514.59.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 35.31 points at 1,831.49.

All industrial categories gained ground, led by iron and steel, nonferrous metal and insurance issues.

Stocks were firm from the morning bell as investor sentiment was bolstered by reports projecting that Democrats won two Senate runoff elections in Georgia.

In doing so, control of the upper chamber has been handed to the Democrats, meaning their agenda of further stimulus to underpin the pandemic-hit economy as well as infrastructure spending, is hoped to speed up the recovery of the world's largest economy.

"Shares advanced on the back of receding political risks and U.S. stimulus hopes," Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., was quoted as saying.

Financial issues gained ground, following higher bond yields, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group all advancing further into positive territory.