TOKYO: Japan’s Topix hit a record high on Thursday, led by gains in automakers and banks, as the market expects a robust corporate outlook in the latter half of the year.

The broader Topix index rose to as high as 2,890.52 earlier in the session, exceeding a record intraday high of 2,885.50 marked in December 1989.

The index also crossed a record closing high of 2,884.80 scaled on the same day over 34 years ago.

The index was up 0.19% to 2,880.53 as of 0200 GMT.

“The Topix needed power from automakers and banks to rise as they take up a large portion in the index’s weighting,” said Yugo Tsuboi, chief equity strategist at Daiwa Securities.

“Bank shares rose along with the expectations that interest rates will rise and automakers were supported by a weak yen.”

Toyota Motor rose 0.99% to provide the biggest boost to the Topix. Honda Motor gained 2.19%.

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Mitsubishi UFJ Financial Group climbed 0.94% and Mizuho Financial Group jumped 2%. The Nikkei rose 0.11% to 40,623.88, led by technology stocks, with chip-testing equipment maker Advantest rising 1.85%.

Technology investor SoftBank Group rose 1%. Daiwa’s Tsuboi said the two main indexes will maintain the momentum toward the end of the year as investors expect local companies will raise their outlook.

“Investors sold Japanese stocks earlier this year as Japanese companies made conservative outlook, but with signs of economic improvement, they expect better outlook to be issued later in the year,” Tsuboi said, adding that he maintains his 43,000 target for the Nikkei at the end of this year.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s (TSE) prime market, 53% rose and 41% fell with 5% trading flat.