TOKYO (AP) _ Share prices on the Tokyo Stock Exchange rebounded in continued light trading Tuesday, while the dollar finished marginally higher against the Japanese yen.

The 225-issue Nikkei Stock Average gained 210.46 points, or 1.34 percent, closing at 15,951.73. On Monday, the average lost 71.46 points, or 0.45 percent, to close at 15,741.27, its lowest level since May 20, 1986.

The Tokyo Stock Price Index of all issues listed on the first section, which shed 6.34 points, or 0.51 percent, the previous day, rose 11.09 points, or 0.90 percent, to 1,236.20.

An estimated 210 million shares changed hands, up from Monday's 154 million shares.

The dollar closed at 125.55 yen, up 0.05 yen from Monday's close but lower than its overnight New York finish at 125.80 yen. After opening at 125.50 yen, it ranged between 125.30 yen and 125.63 yen.

As of 3 p.m. (2 a.m. EDT), the benchmark No. 129 10-year Japanese government bonds stood at 106.15 points, up from Monday's 106.09-point finish. Their yield fell to 5.300 percent from 5.285 percent.

Yutaka Negishi, an analyst with Taiheiyo Securities, said the Nikkei average bounced back on buying by index-linked investment trusts.

A 37.45-point advance in the Dow Jones industrial average overnight on expectations of another U.S. interest rate cut encouraged investors in Tokyo, Negishi said.

He said players also anticipated that the government would come up with a hefty supplementary budget of more than $47.6 billion this fall to stimulate Japan's sagging economy.

Tamoesu Yamazaki of Kyowa Securities said that based on technical factors, ''many are coming to expect that the market could hit bottom in the next week.''

Currency trading was nervous and slow, with the dollar continuing to lose ground on speculation that the Federal Reserve Board may cut interest rates soon, Tokai Bank dealer Yuko Fukakusa said.

Fukakusa said the yen was bought following the Nikkei's rebound, but its rise was stemmed by its relative weakness against the German mark. The dollar also remained weak against the mark.