TOKYO, April 27 (Reuters) - Japan's Nikkei climbed to a

record high on Monday, underpinned by optimism over corporate

earnings and a glimmer of hope after a report on a new proposal

to end the Middle East conflict.

The benchmark Nikkei 225 Index advanced 1.38% to

60,540.57, poised to close over the key 60,000 mark for the

first time. The broader Topix climbed 0.77% to

3,745.37.

Major indexes on Wall Street closed at record highs on

Friday after Intel ( INTC ) beat its earnings estimate, helped

by surging demand in the artificial intelligence sector. The

Philadelphia SE Semiconductor Index extended its record

run of gains to 18 consecutive sessions.

Shares of Japanese factory automation provider Keyence ( KYCCF )

and industrial robot maker Fanuc ( FANUF ) soared more

than 15%, leading gains in the Nikkei after both firms reported

better-than-expected profit after the bell on Friday.

"Stocks related to earnings announcements, as well as AI and

semiconductor-related shares, led the market higher at the

open," said Maki Sawada, an equities strategist at Nomura

Securities. "This week will see a steady stream of earnings

reports from major companies in both Japan and the U.S., so

market attention will naturally gravitate toward those results."

"Since 60,000 is a psychological milestone, many investors

are likely keeping an eye on that level, so profit-taking could

manifest around that range," she added.

The Nikkei fell into negative territory shortly after the

open, but then rallied sharply following an Axios report that

Iran has given the United States a new proposal to end their

war. Discussions to settle the two-month-long conflict were

stalled over the weekend.

There were 124 advancers in the Nikkei index against 100

decliners. After Keyence ( KYCCF ) and Fanuc ( FANUF ), SMC was the

third-biggest gainer, up 9.3%, after Reuters reported that

activist fund Palliser Capital had made a "significant"

investment in the factory automation company.

Rohm ( ROHCF ) was among the steepest decliners, falling 7.8%

after auto parts maker Denso Corp ( DNZOF ) said it was

considering withdrawing its takeover offer for the firm.