Japan's Nikkei stock index rose to a four-month high Monday as investors took heart from better-than-expected industrial output growth.
The benchmark Nikkei 225 stock average gained 139.52 points, or 1.3 percent, to 10,634.23, the highest finish since late August. The broader Topix increased 0.6 percent to 914.78.
"Sentiment turned upbeat on better-than-expected industrial output figures in November. The November results showed a recovery in Japanese exports was continuing on an upturn in demand in Asia," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.
The government said Monday that industrial output -- a key barometer of Japan's economic health -- rose 2.6 percent in November from the previous month, posting the strongest gain in six months.
The November factory output was led by a recovery in export demand from Asia, which accounts for over 50 percent of Japan's total shipments.
Sato said stable foreign currency moves also helped support the market.
Among blue chips, Toyota Motor Corp. -- the world's No. 1 automaker -- edged up 0.3 percent to 3,860 yen. Honda Motor Co. added 1.0 percent to 3,130 yen.
Sony Corp. increased 1.1 percent to 2,705 yen. Panasonic Corp. gained 0.9 percent to 1,292 yen.
Struggling Japan Airlines Corp. fell 1 percent to 96 yen. The money-losing Japanese airline is undergoing major restructuring to get itself back on solid footing.
Kyodo News agency said Monday a government-backed corporate turnaround body, tasked with restructuring Japan Airlines, is mulling liquidating the airline as an option. Japan Airlines declined to comment on the report.
In currencies, the dollar was quoted at 91.53 yen in afternoon Tokyo trade Monday. The euro stood at $1.4390.
U.S., European and most Asian financial markets were closed Friday for Christmas.
