SoftBank's strong profits and growing investments in AI also boosted sentiment. The Nikkei average jumped 1.85 percent to 41,820.48.
The broader Topix index settled 1.21 percent higher at 3,024.21, rising above the key psychological mark of 3,000 points for the first time.
Automakers Nissan, Mitsubishi Motors, Honda and Toyota surged 3-4 percent while SoftBank Group shares soared 10.4 percent. Sony climbed 3.5 percent to extend the previous session's strong gains after hiking profit forecasts.
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