Japan's Topix hits record high on easing US tariff worries, domestic firms' outlook
The broader Topix rose 0.72 per cent to 2,987.92. The Nikkei climbed 0.65 per cent to 41,059.15.
Both indexes rose for a third consecutive session.
The three-day rally eclipsed a sharp decline on Monday, when the Nikkei posted its largest drop in two months.
"The market was too bearish, with concerns about the U.S. tariff impact on domestic firms. But that sentiment was reversed," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
"And the weak economic data in the U.S. raised expectations for the Federal Reserve's rate cut, which supported sentiment of both U.S. and Japanese equities," said Suzuki.
Sony Group jumped 4 per cent to provide the biggest boost to the Topix, after the game and camera maker raised its full-year operating profit forecast by 4 per cent.
The Topix index held its momentum even as heavyweight Toyota Motor slipped 1.5 per cent after the automaker cut its full-year operating profit forecast by 16 per cent.
Shares of Mitsubishi UFJ Financial Group rose 1.85 per cent and Sumitomo Mitsui Financial Group gained 1.35 per cent.
M3's shares surged 22 per cent after Goldman Sachs raised the target price for the medical services platform operator to 2,300 yen from 2,250 yen.
Cosmetic maker Shiseido jumped 11 per cent.
Chip-making equipment maker Tokyo Electron fell for a third day, falling 2.46 per cent on Thursday to weigh on the Nikkei the most.
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