Japan's Nikkei ends higher as investors assess positive US data
Updates at 0630 GMT
TOKYO, Nov 25 (Reuters) -Japan's Nikkei share average ended higher on Monday as local investors found comfort from recent U.S. data that signalled strong business activity in the world's largest economy.
A measure of U.S. business activity raced to a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump's administration next year.
The Nikkei .N225 rose 1.3% to close at 38,780.14 on Monday. The index touched an intraday high of 39,053.64, crossing the 39,000 level for the first time since Nov. 15.
The broader Topix .TOPX gained 0.71% to 2,715.6.
"Overseas factors are important for Japanese stocks now as we have not seen much market-moving catalysts within Japan," said Fumio Matsumoto, chief strategist at Okasan Securities.
Wall Street closed higher on Friday, with all three major indexes posting weekly gains, following the release of the business data.
"But the gains of the Nikkei were capped on concerns about the possible impact of the Republican President-elect Donald Trump's policy on Japanese exporters," Matsumoto said.
Uniqlo owner Fast Retailing 9983.T jumped 3.5% to give the biggest boost to the Nikkei index.
Shares of chip-making equipment maker Tokyo Electron 8035.T gained 3.9% and tech start-up investor SoftBank Group 9984.T added 3.3%.
Keisei Electric Railway 9009.T and Keikyu 9006.T surged 13.83% and 11.07%, respectively, after local media reported an activist investor group was increasing its stakes in both railway operators.
Chip-testing equipment maker Advantest 6857.T slipped 2.3% to weigh the most in the Nikkei. Phone company KDDI 9433.T fell 1.35%.
Of the over 1,600 stocks on the Tokyo Stock Exchange's prime market, 45% rose, 50% fell and 4% were flat.
Of the 225 stocks in the Nikkei, 143 rose, 79 fell, and three were trading flat.
Reporting by Junko Fujita; Editing by Sumana Nandy and Sherry Jacob-Phillips
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