The benchmark Nikkei stock index extended its winning streak to an eleventh straight day Tuesday, as investor sentiment was bolstered by optimism over the health of the U.S. economy and on hopes for upbeat corporate earnings here.

The 225-issue Nikkei Stock Average added 80.56 points, or 0.38 percent, from Monday to end the day at 21,336.12, marking its highest close since Nov. 27, 1996.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 4.19 points, or 0.24 percent, to finish at 1,723.37.

Local brokers said that solid New York manufacturing data for October sending U.S. shares higher overnight supported a buoyant mood here from the get-go, with dip-buying in later trade ensuring the index remained firmly in positive territory.

Brokers here added that expectations for upbeat domestic corporate first-half earnings contributed to a risk-on mood, with investors hedging that favorable currency exchange rates will see profit margins of Japanese companies exposed to overseas markets expand in the recording period.

By the close of play, nonferrous metal, machinery, and iron and steel-linked issues comprised those that gained the most, and rising issues beat falling ones by 971 to 931 on the First Section, with 129 ending the day unchanged.

On the main section on Tuesday, 1,593.64 million shares changed hands, dropping from Monday's volume of 1,801.25 million shares.

The turnover on the second trading day of the week totaled 2,553.2 billion yen (22.75 billion U.S. dollars).