Japanese shares extended their opening gains to close stronger on Wednesday, crossing the 68,000 level, driven by the positive movement in the broader Asian markets and the local government's initiatives to uplift the economy.
The Nikkei 225 index surged 1,667.89 points, or 2.5%, to finish at a record 68,402.13.
Japan's cabinet authorized a 3.1 trillion yen additional budget aimed at shielding households from inflation worsened by the Middle East conflict, Bloomberg News reported Wednesday.
As per the report, the supplementary package establishes a 2.5 trillion yen reserve fund to offer subsidies for countering higher commodity prices, including gasoline.
Investors are also keenly eyeing Bank of Japan Governor Kazuo Ueda's planned speech for hints on the outlook for interest rates.
Media reports quoted Finance Minister Satsuki Katayama as saying that the government "will respond appropriately at any time as necessary" on the falling value of the yen.
On the corporate side, SoftBank Group's (TYO:9984) telecom unit SoftBank Corp. has been shortlisted for a potential bid on Blackstone's payments services provider SP.LINKS Inc., Bloomberg reported Wednesday, citing sources.
Also, Sakai Moving Service's (TYO:9039) May sales rose 4.7% from a year earlier to 8.12 billion yen, according to a Wednesday filing on the Tokyo Stock Exchange.