The Nikkei stock index rose to a more than seven-month closing high Tuesday, the first trading day of 2011, lifted by growing optimism about the global economic outlook and eased worries about the yen’s strength against the dollar. The 225-issue Nikkei Stock Average advanced 169.18 points to 10,398.10, its highest closing since May 14, 2010. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 13.00 points to 911.80.

Stocks got off to a strong start as investor sentiment brightened after the overnight release of positive economic data such as U.S. manufacturing and construction figures that raised expectations for the global economy, brokers said. Upward momentum gathered pace in the afternoon, helped by strong gains in Nikkei futures, as the dollar rose above the 82 yen line and other Asian stock markets also performed well.

‘‘Japanese stocks played catch-up with shares in developed countries but failed to fill the gap last year. Historically, the Year of the Rabbit is said to herald a jump for stocks, and it’s a decent jump at the start,’’ said Tsuyoshi Segawa, equity strategist at Mizuho Securities Co.

‘‘U.S. economic data were good, and there is optimism that the U.S. economy will continue to recover. The yen’s strength sent shares lower on the final trading day of last year, but as long as the dollar stays around current levels, it’s unlikely to be much of a negative,’’ Segawa added.

The dollar traded in the lower 82 yen range when the stock market closed, compared with the upper 81 yen zone earlier in the day.

Source: JapanToday