TOKYO, Oct 8 (Reuters) - Japan's Nikkei rose for a second straight session on Friday, tracking gains on Wall Street and as investors scooped up bargains after sharp declines this month, while Toyota Motor helped the Topix close higher for the first time in 10 sessions.

The Nikkei share average ended 1.34% higher at 28,048.94, paring gains after a 2.3% jump in early trade as investors awaited industry bellwether Yaskawa Electric to kick off the earnings season later in the day. The broader Topix gained 1.15% to 1,961.85.

For the week, the Nikkei dropped 2.51%, weighed down by concerns about China's economic slowdown and U.S. inflation fears. For the month, the index has lost 4.77%.

Wall Street ended sharply higher overnight in a broad-based rally led by Big Tech, as a truce in the debt-ceiling standoff in the Congress relieved concerns of a possible government debt default this month.

"Domestic shares rose because overseas markets advanced, but today's gain was just a rebound from sharp losses," said Shigetoshi Kamada, general manager at the research department of Tachibana Securities.

With no stock-moving catalyst within Japan, investors are awaiting the new government's policies ahead of the Oct. 31 national lower house election, Kamada said.

Newly appointed Prime Minister Fumio Kishida said he would do his utmost to lead Japan out of the COVID-19 crisis.

Last week, he flagged chances of tweaking the nation's financial income tax rate, which Kamada said has a negative impact on the local market.

Automakers advanced as the yen weakened against the dollar, with Toyota Motor jumping 2.89% and Honda Motor rising 1.14%.

Eneos, Japan's biggest refiner, closed lower after rising in early trade following a report that said it would buy Japan Renewable Energy, which operates solar and wind power plants, for about 200 billion yen ($1.8 billion) from Goldman Sachs and Singaporean sovereign wealth fund GIC. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)