Tokyo:Japan's benchmark Nikkei 225 surged 3.3 percent to close at 68,956.72, marking its highest level since August 18, driven by optimism surrounding AI-related investments.

According to Qatar News Agency, the broader Topix index also saw gains, finishing 0.57 percent higher at 4,131.98 points.

Chipmaker stocks were at the forefront of the rally, with Lasertec climbing 11.14 percent, Advantest rising 9.78 percent, Murata Manufacturing increasing by 8.43 percent, and Kioxia advancing 5.55 percent.

Contrastingly, the banking sector experienced a decline of 2.44 percent, the insurance sector fell by 2.31 percent, and the oil and coal sector index decreased by 2.97 percent.