UPDATE 1-Japan stock market cap hits record, exceeds 1989 peak
* Japan stocks market capitalisation exceeds its 1989 peak
* Former national monopolies, Toyota, banks still dominate
* Market cap amounts to 118 pct of GDP (adds investor comment, background)
By Hideyuki Sano
TOKYO, May 22 (Reuters) - The market capitalisation of shares listed on the Tokyo Stock Exchange's main board hit a record high on Friday, topping a 26-year peak and marking one victory in Prime Minister Shinzo Abe's campaign to jolt the economy out of a long phase of deflation and stagnation.
The total market capitalisation of the TSE's first section rose to 591.30 trillion yen ($4.9 trillion), surpassing the previous peak of 590.09 trillion yen hit in December 1989, when share prices hit record peaks at the height of the Japanese asset bubble.
Although the TSE's Topix index is still more than 40 percent below its 1989 peak, the market's size grew as the number of listed firms increased to 1,881 from 1,161 back then.
Topix closed at 1,647.85, compared to the record high of 2,884.80 hit in 1989.
Investors say the market's fundamentals look much better now compared to 26 years ago, when Tokyo shares were traded at 60 times earnings. Ratios of price to earnings above 20 are often considered too expensive. Continuación...