Nikkei share average jumped 1.54 per cent to 28,779.19. The broader Topix gained 1.38 per cent at 1,890.95.
The S&P 500 and Nasdaq posted record closing highs overnight, as Democrats pushed ahead with U.S. President Joe Biden’s proposed $1.9 trillion stimulus plan without bipartisan support.
“A bigger economic stimulus package in the U.S. is good for the global economy and that optimism is lifting economic-sensitive shares in Japan,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Japanese automakers jumped, with Mazda Motor surging 18.52 per cent after cutting its loss forecast, making it the biggest gainer in the Nikkei index.
Mitsubishi Motor jumped 8.13 per cent and Nissan Motor gained 7.51 per cent.
NTT Data jumped 9.63 per cent after Nomura Securities raised its target price on the information network builder’s stock.
Railway companies, which are also considered sensitive to economic news, gained. Central Japan Railway rose 5.14 per cent and West Japan Railway increased 6.3 per cent.
Takeda Pharmaceutical edged up 0.33 per cent after the drug maker said its nine-month profit more than doubled from a year earlier.
Tokyo Rope surged 10.13 per cent as the steel maker opposed a bid by Nippon Steel, which is trying to boost its stake in the smaller affiliate.
Japan Asia Group jumped 8.96 per cent after an activist fund launched a counter bid for the energy and environment firm, which has agreed to be bought by Carlyle Group.
