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Share prices closed broadly higher, buoyed by the steady improvement in investor sentiment coupled with buying of the futures, brokers said.
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The Nikkei-225 Index closed up 88.22 points at 21,363.24, ending near the high of 21,386.45.
There were 531 gainers and 453 losers, with 237 issues unchanged.
The Topix Index finished ahead 8.04 points at 1,613.96, with the Nikkei-300 Index up 1.84 points at 300.46.
The September futures rose 120 points at 21,380 in Osaka, gaining 95 points to 21,380 on Simex.
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Bank shares listed on the first section of the Tokyo Stock Exchange climbed 1.57 per cent as a group. Many investors abstained from trading as they waited for the release of the Bank of Japan's quarterly survey on the economy.
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