TOKYO, Dec. 28 (Xinhua) -- Japan's 225-issue Nikkei Stock Average rose 1.33 percent on Monday following government reports released early on Monday morning stating that the country's industrial production for November had risen 2.6 percent in November and was set to continue an upward trend into the New Year. Japan's key benchmark Nikkei closed at its highest level since Aug. 26, adding 139.52 points from Friday to 10,634.23. The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed up 5.39 points, or 0.59 percent, to 914.78, its highest close since Sept. 25. The better-than-expected industrial output data elevated market sentiment on Monday and coupled with the dollar hovering around the 91.50-yen range, machinery, electronic equipment makers and exporter issues led the rally. "The positive industrial production report helped boost confidence in company performances," said Makoto Haga, chief strategist at Tokyo-based securities company Monex Group Inc. "The market just needed something to trigger an advance." The robust economic data buoyed a myriad of industries on Monday and the recovery of Japan's export-driven economy is fast becoming a reality rather than a hope, strategists said. Nissan Motor Co. Ltd. rose 1.65 percent to 800 yen and Honda Motor Co. Ltd., Japan's second-largest carmaker, gained 0.97 percent to 3,130 yen. The world's top automaker, Toyota Motor Corp., added 0.26 percent to close at 3,860 yen. Fanuc Ltd., Japan's largest maker of industrial robots, added 1.9 percent to 8,700 yen. Tokyo Electron Ltd., the world's second-largest maker of semiconductor equipment, advanced 2.4 percent to 6,020 yen. Kyocera Corp., an electronic-component maker, climbed 1.7 percent to 8,310 yen. "Despite all the worries by market players, the report showed that the economy is recovering," said Masaru Hamasaki, chief strategist at Tokyo-based Toyota Asset Management Co. Resource-related issues rose with Monday's industrial output news, with Nippon Oil Corp., currently Japan's largest petroleum refiner, climbing 4.8 percent to 437 yen and Nippon Mining Holdings Inc., soon to merge with Nippon Oil, surging 5.4 percent to 408 yen, both notable gainers on the Nikkei Monday. Nippon Steel Corp. gained 1.35 percent to 374 yen and Toho ZincCo. Ltd. added 2.47 percent to 457 yen. Taiheiyo Cement Corp. climbed 3.77 percent to 110 yen and Pacific Metals Co. Ltd. rose 2.17 percent to 705 yen. Following gains made Monday in electronic, automotive and resource-linked issues, Japan's shipping firms also chartered their way into positive territory with Mitsui O.S.K. Lines Ltd. advancing 2.91 percent to 494 yen. Fellow shipper Kawasaki Kisen Kaisha Ltd. rose 2.65 percent to 271, whilst Mitsui Engineering and Shipbuilding Co. Ltd. gained 0.91 percent to 222 yen. Although air transport, diversified banking and securities issues weighed on the market Monday, investor sentiment is becoming more optimistic towards Japanese issues, helped by the Cabinet on Friday approving a record 92.30 trillion yen budget for fiscal 2010. Investor anxiety had been mounting as rumors circulated about the delaying of the budget's drafting until the New Year, analysts indicated. The Cabinet Office adding that Japan's gross domestic product will probably expand 1.4 percent in the year starting April 2010, further lifted market sentiment on Monday. Trade was light on the Tokyo exchange's First section, with some 1.5 billion shares changing hands, below last week's daily average of 1.7 billion shares. Advancing issues outnumbered declining ones by 980 to 534. (1 U.S. dollar equals about 91 yen)

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