TOKYO, July 3 (Xinhua) -- Tokyo stocks on Monday closed higher by reaching new highs in over three decades, driven by positive results from the central bank's manufacturing business survey and recent U.S. data suggesting a slowdown in inflation.
The 225-issue Nikkei Stock Average gained 564.29 points, or 1.70 percent, from the previous trading day to close at 33,753.33, the highest level since March 9, 1990.
The broader Topix index also went up, closing 32.21 points or 1.41 percent higher at 2,320.81, also hitting a 33-year high.
The U.S. dollar saw a slight increase, trading in the upper 144 yen range, as domestic importers purchased the currency for settlement purposes.
Driven by machinery shares, stocks remained strong throughout the day, following the Bank of Japan's quarterly survey, which revealed an anticipated improvement in the confidence of major Japanese manufacturers.
The sentiment improved in June for the first time in seven quarters. Notable gains were seen in manufacturers such as Daikin Industries, which rose by 6.7 percent, and heavy machinery maker IHI, which gained 4.3 percent.
The survey also indicated increased optimism among automakers, service providers, and companies involved in textiles, petroleum and coal products, steel, and food industries compared to the previous three months.
Stocks also received a boost from the rise in Wall Street, following the release of U.S. data showing a slowdown in the personal consumption expenditures price index for May. Market analysts believe this raises expectations for a soft landing of the U.S. economy.
However, market watchers pointed out that as both the Nikkei and Topix reached their highest levels in 33 years, investors may choose to secure their profits if sentiment weakens overnight on Wall Street.
By the close of play, multiple sectors contributed to the market rally, with machinery, electric appliance, and marine transportation stocks leading the way. ■
