The benchmark index on the Tokyo Stock Exchange continued its rally on Monday, closing at the highest level in almost 34 years.

The Nikkei Stock Average gained more than 600 points during trading, driven by buy orders on semiconductor, electronics and machinery stocks after high-tech shares rallied in New York last week.

The gauge closed at 36,546, up 583 points from Friday's close. The last time it finished above the 36,000 level was in February 1990, during Japan's asset-inflated bubble era.

The broader TOPIX index gained 34 points to 2,544.

Market sources attribute the growing bullish sentiment for Japanese stocks to a rally in the United States.

They also say that investors are waiting for Tuesday's outcome of the Bank of Japan policy meeting and a subsequent news conference by BOJ Governor Ueda Kazuo.