TOKYO, June 5 (Xinhua) -- Japan's benchmark Nikkei stock index ended at a 33-year high on Monday as investor sentiment was lifted by Wall Street's gains late last week on upbeat labor data.
The 225-issue Nikkei Stock Average jumped 693.21 points, or 2.20 percent, from Friday to close the day at 32,217.43, marking its highest closing level since July 20, 1990.
The broader Topix index, meanwhile, gained 37.09 points, or 1.70 percent, to finish at 2,219.79, to book its highest finish since Aug. 1, 1990.
Local brokers said the market mood was lifted by Wall Street getting a boost on Friday following the release of solid jobs data for May that came in above median economists' expectations.
They highlighted the better-than-expected non-farm employment report showed that the U.S. economy added a further 339,000 jobs in May.
Market strategists here said the solid jobs data will inform the imminent course of the U.S. Federal Reserve's rate hikes, with speculation swirling the central bank may opt to forego a hike this month if the cumulative economic data shows the economy is showing signs of recovery.
"Concerns about an imminent recession have eased as the data show that the economy is performing well," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.
"The meeting will be crucial in confirming whether the Fed will maintain its current rates or make changes based on economic data and other factors," Ichikawa said.
Along with eased concerns over the U.S. debt ceiling issue and a potentially catastrophic and unprecedented default being narrowly averted in the eleventh hour, dealers here said investors switched their attention to Japanese equities.
This, they explained, was partly down to Japan's central bank likely opting to maintain its ultra-low monetary policy to underpin the economy, despite a divergence in policies with other major central banks for the time being.
"The market was supported by the gains in the U.S. market on Friday. That helped keep the money flowing into risk assets in Japan," Shigetoshi Kamada, general manager at the research department at Tachibana Securities, was quoted as saying.
"The Japanese equities are in more favorable position than their U.S. peers as the Bank of Japan is expected to maintain ultra low rates. Hence, when U.S. shares rise, there is no reason for not buying Japanese stocks," said Kamada.
Among notable advancers, Nikkei heavyweight Fast Retailing, owner of the Uniqlo clothing chain, helped buoy the broader market, jumping 3.9 percent.
Chip-oriented shares also reversed earlier losses to bolster the market, with heavyweights Tokyo Electron and Advantest adding 0.7 and 3.4 percent, respectively.
Screen Holdings, for its part, ended 1.9 percent higher, while industrial robotics maker Fanuc climbed 4.5 percent by the close.
While utilities lost ground, with Tokyo Electric Power Holdings weighing on the Nikkei, losing 3.6 percent, energy-linked issues gained following a deal between Saudi Arabia and OPEC+ to reduce production of crude oil.
As a result, refiner Eneos Holdings added or 2.1 percent, while oil exploration giant Inpex gained 2.8 percent.
By the close of play, machinery, marine transportation, and textile and apparel shares comprised those that gained the most.
The turnover on the Prime Market on the first trading day of the week came to 3,871.21 billion yen (27.59 billion U.S. dollars). ■