The 225-issue Nikkei average surged over 3 percent to end at a 26-year high on Thursday, the first trading day of 2018, as solid manufacturing data from the United States and China reinforced optimism about the world economy.

The Nikkei ended up 741.39 points, or 3.26 percent, from Friday at 23,506.33, its highest close since Jan. 7, 1992. The broader Topix index of all first section issues on the Tokyo Stock Exchange finished up 46.26 points, or 2.55 percent, at 1,863.82.

Tokyo markets were closed from Monday to Wednesday for New Year's holidays.