The Nikkei index closed significantly higher, rising 2.46% to 50,512.32 points.
The broader Topix index also ended the session with gains, advancing 1.7% to 3,325.05 points.
The Nikkei represents the unweighted average of the 225 leading stocks on the Tokyo Stock Exchange, while the Topix index includes the shares of the 1,600 largest listed companies.
The Tokyo stock market was buoyed by easing trade tensions between the United States and China after delegations from both countries reached a “tentative agreement” on a trade deal on Sunday, following two days of talks in Kuala Lumpur.
Additionally, various polls released today by local media showed high approval ratings for the new conservative government led by Sanae Takaichi, who made history last Tuesday by becoming Japan’s first female head of government, boosting market gains.
The Japanese leader is expected to meet with U.S. President Donald Trump on Tuesday to discuss Tokyo-Washington relations.
In a message posted on social media on Saturday, Sanae Takaichi mentioned having a “good and frank” phone conversation with the U.S. leader, expressing a commitment to elevate the Japan-U.S. alliance to even greater heights.
Gains were widespread among major companies in the Asian country, with automotive giant Toyota and bank Mitsubishi UFJ rising 2.65% and 2.01% respectively.
Semiconductor companies, such as Tokyo Electron (1.26%) and Advantest (6.09%), also benefited from the positive investor sentiment.
Moreover, electronics and entertainment giant Sony increased by 0.85%, while video game company Nintendo grew by 1.79%.
