A visitor walks past Japan's Nikkei stock prices quotation board inside a building in Tokyo, Japan February 19, 2024. REUTERS/Issei Kato/ File Photo

By Junko Fujita

TOKYO (Reuters) -Japan's Nikkei share average extended its gains from last week to end at a record high on Monday, as a weaker yen pushed automakers' stocks higher.

The Nikkei rose 0.77% to 43,714.31 and the broader Topix rose 0.43% to 3,120.96. Both closed at record levels for the second straight session.

Japanese shares rallied this month on renewed optimism over the domestic corporate outlook and economic growth as the impact of U.S. tariffs became clearer.

"Domestic equities kept the momentum from last week. There was an expectation that foreign investors would continue buying Japanese stocks," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.

Fast Retailing gained 1.28% to lend the biggest boost to the Nikkei. Chip-testing equipment maker Advantest reversed early losses to end 1.48% higher.

Automakers rose, with Toyota Motor and Honda Motor rising 1.72% and 1.56%, respectively, as the yen lost about 0.2% against the U.S. dollar on Monday.

A weaker Japanese currency tends to boost exporters' shares as it increases the value of overseas profits in yen terms when repatriated to Japan.

Meanwhile, Japanese shares were also underpinned by the Dow Jones hitting an intraday record high on Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake. [.N]

Back in Tokyo, banks fell, sending the banking index 1.93% lower and making it the biggest loser among the Tokyo Stock Exchange's (TSE) industry sub-indexes.

Mitsubishi UFJ Financial Group lost 2.55% and Sumitomo Mitsui Financial Group shed 2.3%.

Banks had risen on Friday after a surprisingly strong economic data drove expectations for the Bank of Japan's interest rate hike.

Chip-making equipment maker Tokyo Electron lost 2.14% to weigh the most on the Nikkei. Sony Group fell 2.54%.

Of more than 1,600 stocks trading on the TSE's prime market, 69% rose, 27% fell and 2% traded flat.

(Reporting by Junko Fujita; Editing by Sumana Nandy)