Japan’s Nikkei rose to a nine-week closing high on Thursday as strong numbers in a major corporate survey lifted shares of stable growth firms like Toyota Motor Corp. and Takeda Pharmaceutical Co. Ltd.

But banks were weaker after Goldman Sachs cut its view on the sector. UFJ Holdings Inc, Japan’s fourth-biggest banking group, also tumbled after a state-backed restructuring body said it would pull no punches if tasked with reviving UFJ Bank’s troubled borrowers. Although the benchmark Nikkei average challenged the 12,000 mark soon after the opening, it failed to gain more steam.

It closed up 0.31 percent or 37.14 points at 11,896.01, its highest level since April 28.

The broader TOPIX index, however, edged 0.10 percent lower to 1,188.42, its first fall in six sessions.

"The market had run up pretty high in expectation of a good tankan number and so we’ve run out of good news for the time being," said Katsuhiko Kodama, head of equities at Toyo Securities.

The Bank of Japan’s "tankan" poll of business sentiment produced a plus 22 reading for the headline diffusion index (DI) for large manufacturers, compared to plus 12 in March. The figure was the highest since August 1991 and well above a consensus forecast for plus 17.

The index for small manufacturers also rose to plus 2 from minus 3 in March, marking the first positive reading since November 1991.

"The small manufacturers’ number came in pretty much as expected. If it had been higher, we would probably see some more buying activity but as it is we will have to wait to see what foreigners do tomorrow before we know the direction of the market," said Kodama.

Toyota, Japan’s biggest auto maker, drove 1.58 percent higher to end at 4,490 yen after rising as high as 4,500 yen, its highest intraday level since March 2001. Takeda Pharmaceutical added 0.84 percent to 4,830.

Banks were also among the largest percentage losers in the benchmark Nikkei average after Goldman Sachs cut its coverage view on the sector to "neutral" from "attractive."

Goldman analyst David Atkinson said in a report he still expected bank share prices to deliver 10-15 percent annualized returns for the next five years but he expected relative performance to be much lower than last year, less sector-driven and more stock-specific.

UFJ fell 5.39 percent to 456,000 yen while Sumitomo Mitsui Financial Group Inc. dropped 3.88 percent to 719,000.

(Reuters)