Japanese shares crossed a record high of 67,000 in Monday's trade to close higher, tracking Asian peers that also posted gains driven by optimism over investments in artificial intelligence.
The Nikkei 225 pared early gains to close up 604.83 points or 0.9% at 66,934.33.
The focus on technology stocks helped overcome caution around the slow progress in the negotiations for a peaceful resolution of the ongoing geopolitical tensions in Iran.
The gains were led by the SoftBank Group (TYO:9984), the investment company that focuses heavily on AI, closing up over 14% after extending its gains from last week. The surge in the company's share price on Monday helped SoftBank to push its market capitalization to over 47 trillion yen, making it the most valuable company on the Tokyo exchange for the first time in over two decades.
It was also reported that on Sunday, SoftBank Group (TYO:9984) has committed to developing and operating 5 gigawatts of artificial intelligence data center capacity in France, with a pledge to invest up to 75 billion euros.
Also, Japanese technology group Kioxia Holdings Corp (TYO:285A) closed higher by over 10%.
In other corporate news, Kansai Electric Power (TYO:9503) plans to build new liquefied natural gas-fired plants as part of a broader push to increase generating capacity by about 30% by fiscal 2040, Nikkei Asia reported Monday, citing President Nozomu Mori.
Also, Shionogi & Co's (TYO:4507) has received the US Food and Drug Administration's approval for its Xocova or ensitrelvir as the first and only oral antiviral for post-exposure prophylaxis of COVID-19 in individuals aged 12 and older, according to a Tokyo bourse filing on Monday.