Stocks gained further ground Monday on the Tokyo Stock Exchange, after U.S. equity gauges hit record highs Friday.

The 225-issue Nikkei average rose 197.87 points, or 0.88 percent, to end at 22,799.64. On Friday, the key market indicator advanced 190.95 points.

The Topix index of all first-section issues was up 19.75 points, or 1.16 percent, at 1,728.95, after adding 10.98 points the previous trading day.

On Wall Street, the S&P 500 and tech-heavy Nasdaq composite indexes hit record highs Friday after Federal Reserve Chairman Jerome Powell reiterated the Fed’s stance of continuing gradual rate hikes in his speech at an annual economic symposium in Jackson Hole, Wyoming, bolstering market sentiment in Tokyo, brokers said.

Investors also took heart from brisk Chinese stocks on the back of the higher U.S. stocks and a lack of fresh negative developments in the U.S.-China trade friction, they said.

An official of a major securities firm noted “a lot of buybacks,” adding that such moves seem to have been “a main driver of the market’s rise.”

But the official was doubtful about the market’s strength, pointing to continuing thin trading.

For the market to chase higher ground, it will need more positive factors that will encourage more investors to boost trading, said Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd.

Rising issues overwhelmed falling ones 1,767 to 273 in the TSE’s first section, while 65 issues were unchanged.

Volume increased to 1.045 billion shares from 983 million shares on Friday.

China-related names attracted purchases following brisk Chinese stocks, brokers said. Major gainers included construction machinery makers Komatsu and Hitachi Construction.

Astellas hit a year-to-date high of ¥1,923.5 after Nomura Securities Co. revised up its stock target price for the drug maker, to ¥2,500 from ¥2,200.

Other major winners included cosmetics makers Kose and Shiseido, automakers Toyota and Honda, and technology giant Sony.

Meanwhile, Casio lost 1.72 percent after Goldman Sachs Japan Co. revised down its investment rating and stock target price for the technology company.

Also lower were mobile phone carrier KDDI and drug maker Eisai.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average gained 180 points to end at 22,770.

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