(Updates at 0630 GMT)

TOKYO, Nov 25 (Reuters) - Japan's Nikkei share average

ended higher on Monday as local investors found comfort from

recent U.S. data that signalled strong business activity in the

world's largest economy.

A measure of U.S. business activity raced to a 31-month high

in November, boosted by hopes for lower interest rates and more

business-friendly policies from President-elect Donald Trump's

administration next year.

The Nikkei rose 1.3% to close at 38,780.14 on

Monday. The index touched an intraday high of 39,053.64,

crossing the 39,000 level for the first time since Nov. 15.

The broader Topix gained 0.71% to 2,715.6.

"Overseas factors are important for Japanese stocks now as

we have not seen much market-moving catalysts within Japan,"

said Fumio Matsumoto, chief strategist at Okasan Securities.

Wall Street closed higher on Friday, with all three major

indexes posting weekly gains, following the release of the

business data.

"But the gains of the Nikkei were capped on concerns about

the possible impact of the Republican President-elect Donald

Trump's policy on Japanese exporters," Matsumoto said.

Uniqlo owner Fast Retailing ( FRCOF ) jumped 3.5% to give the

biggest boost to the Nikkei index.

Shares of chip-making equipment maker Tokyo Electron ( TOELF )

gained 3.9% and tech start-up investor SoftBank Group

added 3.3%.

Keisei Electric Railway ( KELRF ) and Keikyu ( KHEXF ) surged

13.83% and 11.07%, respectively, after local media reported an

activist investor group was increasing its stakes in both

railway operators.

Chip-testing equipment maker Advantest ( ADTTF ) slipped 2.3%

to weigh the most in the Nikkei. Phone company KDDI ( KDDIF )

fell 1.35%.

Of the over 1,600 stocks on the Tokyo Stock Exchange's prime

market, 45% rose, 50% fell and 4% were flat.

Of the 225 stocks in the Nikkei, 143 rose, 79 fell, and

three were trading flat.