Tokyo stocks advanced Tuesday on growing optimism over the economy, pushing the key Nikkei index above the 12,000 line for the first time in 32 months.

The 225-issue Nikkei average jumped 121.38 points, or 1.02 percent, to close at 12,079.70, its highest finish since the 12,163.67 marked Aug. 8, 2001.

The broader Topix index of all first section issues on the Tokyo Stock Exchange gained 10.20 points, or 0.85 percent, to 1,209.44, its highest finish since 1,217.92 on Aug. 8, 2001.