Market sentiment stayed positive, with investors also focusing on the Bank of Japan's policy meeting later this week. Interest rates are expected to remain unchanged as officials review the economic impact of the Middle East conflict.

Technology stocks led the gains, with strong performances from companies like Kioxia Holdings, Advantest, Fujikura, Disco Corp, and Lasertec.

In company news, Fanuc surged nearly 16% after reporting strong earnings, supported by high demand for its factory automation and robotics products, especially in China and the Americas.

On the downside, Nomura Holdings fell more than 6% after reporting weaker-than-expected quarterly profits due to losses and writedowns in its European business.