The benchmark Nikkei 225 index added 0.26 per cent, or 84.98 points, to 33,254.03, while the broader Topix index edged up 0.04 per cent, or 0.97 points, to 2,337.40.
While trading slowed heading into Christmas, global investors generally continued to buy shares believing that the US economy will achieve a “soft landing” and that the Federal Reserve may turn to rate cuts in the coming year, Nomura Securities said.
Many markets were expected to stay quiet over the Christmas holiday period, with stock markets throughout most of Asia closed on Monday.
Nomura added that some players may be looking for a suitable time to sell stocks, as US shares have gained steadily in recent weeks.
High-tech shares attracted buyers after the Nasdaq advanced last week, while players also cheered the forex market regaining relative calm, IwaiCosmo Securities said.
“The market opened higher in the morning, but it gradually came to face selling pressure as investors sold their shares to adjust positions with only a limited number of participants,” the brokerage said.
The relative strength of Shanghai shares provided support for Tokyo shares, it added.
The Shanghai Composite Index shed earlier losses and ended up 0.14 per cent, or 4.04 points, at 2,918.81.
The Taiwan Weighted Index edged up 0.05 per cent, or 8.21 points, to 17,604.84.
Among major Tokyo shares, Toyota added 0.83 per cent to 2,537 yen. SoftBank Group rose 1.25 per cent to 6,099 yen.
Sony Group added 1.04 percent to 13,120 yen.
Nintendo gave up earlier gains and fell 0.17 per cent to 6,934 yen. Mitsubishi UFJ Financial Group also lost 0.74 per cent to 1,207 yen.
Energy developer Inpex rose 0.29 per cent to 1,934 yen.
Uniqlo operator Fast Retailing firmed 0.62 per cent to 35,830 yen.
AFP