TOKYO: Japanese stocks gained on Monday, with the Topix renewing a 33-year high as a weaker yen lent broad support and economically sensitive stocks rallied amid a strengthening view that the US economy will avoid recession.

Market sentiment was also buoyed by gains in Chinese equities after Beijing unveiled a new set of stimulus measures.

The Topix finished the day up 1.02% at 2,368.29, the day’s high point and a fresh 33-year peak.

The Nikkei 225 share average added 0.7% to 32,939.18, also the session’s peak and a new one-month high.

Both indexes gained for a sixth straight day, the longest run since mid-May.

However, a dearth of key economic indicators or other events this week may prevent aggressive buying of Japanese stocks, said Nomura Securities strategist Maki Sawada, predicting a 32,300-33,300 range for the Nikkei.

Japan’s Nikkei rises for fourth day on boost from growth stocks, automakers

“It’s an environment conducive to fostering concerns the market is overbought, considering how far it’s come over a short amount of time,” she said.

US stock futures pointed higher following Friday’s gains in the S&P 500, when economic data suggested some loosening of the jobs market.

While the figures reduced bets for more Federal Reserve tightening, it cemented views of higher-for-longer rates. Long-term Treasury yields rose, lifting the dollar above 146 yen. US markets are closed on Monday for a holiday.

Meanwhile, Chinese shares rallied strongly amid new reform measures, including relaxed listing rules, and expectations of more policy support for the embattled property sector.

Iron and steel paced gains among the Tokyo Stock Exchange’s 33 industry sectors, jumping 4.11%, while shippers rose 3.32%.

Transport equipment makers rounded out the TSE’s top three, gaining 2.78%, with a weaker yen boosting the value of overseas revenue.

Mazda rallied 4.14% and Nissan climbed 3.64%, while Toyota advanced 3.1%.