The broader Topix index settled 1.19 percent higher at 2,711.27. Automakers led the surge, with Honda Motor rising 1.4 percent while Toyota Motor and Subaru both gained around 3 percent.
Daiichi Sankyo jumped 8.2 percent after the company received FDA approval for a breast cancer treatment it is developing with AstraZeneca.
In economic news, government data showed that Japan's core machinery orders rose 3.4 percent in November from the previous month to beat analysts' forecast.
Powered by Capital Market - Live News