Tokyo's Topix index ended Tuesday at its highest level in around 33 years and the Nikkei at a fresh one-month high as stocks were lifted by the yen's depreciation against the U.S. dollar.
The 225-issue Nikkei Stock Average ended up 304.36 points, or 0.92 percent, from Monday at 33,476.58, its highest finish since July 3.
The broader Topix index finished 14.80 points, or 0.64 percent, higher at 2,337.36, its highest close since July 1990.
On the top-tier Prime Market, gainers were led by electric power and gas, marine transportation and transportation equipment issues.
The U.S. dollar rose to the upper 142 yen range on expectations that the interest rate differential between the United States and Japan will widen as the Bank of Japan maintains its ultraeasy monetary policy, brokers said.
At 5 p.m., the dollar fetched 142.71-73 yen compared with 142.22-32 yen in New York and 142.17-18 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0979-0980 and 156.69-73 yen against $1.0992-1002 and 156.42-52 yen in New York and $1.1019-1021 and 156.66-70 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond inched down 0.010 percentage point from Monday's close to 0.590 percent, as the safe-haven debt was bought on expectations that the BOJ will continue with its ultraeasy policy.
Tokyo stocks tracked overnight gains on Wall Street, with the Dow Jones index closing overnight at its highest level since February 2022, while the depreciating Japanese currency boosted export-oriented shares.
"The weak yen was a massive support for stocks, but market participants need an additional positive cue to chase the Nikkei's upside," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
The Nikkei index remained top-heavy as investors have been taking in profits since the benchmark surpassed the 33,000 psychological threshold, analysts said.
Toyota Motor rose 59.5 yen, or 2.5 percent, to 2,445.5 yen, after the automaker said its net profit in the April-June quarter rose to a record 1.31 trillion yen.
Among export-oriented issues that were lifted by the weak yen, Mazda Motor rose 26.0 yen, or 1.8 percent, to 1,431.5 yen and Nissan Motor was up 22.8 yen, or 3.7 percent, at 645.8 yen.
Energy-related shares climbed after the benchmark West Texas Intermediate crude oil futures contract for September ended overnight at $81.80 per barrel, the highest closing level since mid-April.
Oil explorer Inpex gained 16.5 yen, or 0.9 percent, to 1,849.0 yen, while refiner Cosmo Energy Holdings was up 84 yen, or 1.9 percent, at 4,485 yen.