The 225-issue Nikkei Stock Average closed up 72.76 points, or 0. 72 percent, from Wednesday at 10,123.28, hitting its highest mark since July 22, when it closed at 10,132.11.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 6.50 points, or 0.76 percent, higher at 863.61.

Gainers included the sea transport, transport equipment, and insurance sectors. Decliners included the air transport, securities and real estate sectors.

Domestic exporters drew buying on the back of the weakening yen, with the U.S. dollar fetching an 11-month high at the lower 84 yen level, according to brokers.

The stock market continued rising for a third consecutive session, even after a substantial rally on Wednesday, when the key Nikkei index ended above the 10,000 line for the first time in more than seven months.

An analyst here said it's possible that the index will fall back to around 9,800 level following the recent rally, but confidence the future of the U.S. economic recovery may further boost the market.

Trading volume rose to 2,413.54 million shares from Wednesday's 2,341.25 million.

The turnover was about 1,429.6 billion yen (about 17.01 billion U.S. dollars).

VietNamNet/Xinhuanet