The benchmark Nikkei index rose 0.91% to close at 26537.31 points, the highest level since April 1991. 101 shares rose on the index against a decline of 118. The broader Topix index rose 0.6% to 1778.25 points.
The telecommunications, precision instruments and electrical appliances sectors were among the highest performing sectors in the main stock exchange, registering increases between 1.51 and 1.79%.
The market opened lower, but the general trend quickly changed with the rise of technology-related stocks and investors reaping gains, supported by the closing of the US Nasdaq index, full of technology stocks, up 0.47%.