Tokyo's benchmark stock index closed at a more than two-decade high today, as the Japanese market joins in a global equities rally with its US counterparts hitting fresh records.

The Nikkei 225 rose 0.28%, or 57.76 points, to end at 20,881.27, its best finish since December 1996. 

The Japanese market closed at levels last seen the year that Prince Charles and Diana divorced, Bill Clinton won his second term as US president and Nintendo launched its Pokemon brand. 

Japan Inc has been reporting bumper profits and the world's third biggest economy is on an upswing.

But the Japanese market has also benefited from a global equities rally that saw Wall Street chalking up more record finishes on the past two weeks. 

The Nikkei has rebounded from below the 15,000 mark in June last year after Britain's vote to exit the EU pummelled world markets, while a strong yen hit Japanese exporters. 

The index has regained strength since US President Donald Trump was elected as dealers bet on his plans for big spending and tax cuts.