The Tokyo stock market is likely to continue its long-term climb following Wednesday's election of a new leader of Japan's ruling party, analysts say, citing hopes the incoming administration will bring fresh measures to buoy the economy.

With the election of former Foreign Minister Fumio Kishida as new Liberal Democratic Party president, which sets him up to be installed as prime minister, the 225-issue Nikkei average of the Tokyo Stock Exchange is expected to move between 28,000 and 32,000 through the year after reaching around a 31-year high of 30,000 in recent sessions.

Some market participants predict the bellwether index could jump to as high as 34,000 by the end of 2021 amid a slew of strong earnings forecasts from domestic companies and with the ruling party having a good showing in the November general election under Kishida.