The Nikkei 225 Index rose 0.3% to around 3,990, while the broader Topix Index edged up 0.1% to 2,712 on Monday, recovering some losses from the previous session and mirroring Wall Street's gains from Friday.

Investors remained cautious as they navigated US President Donald Trump's evolving trade policies and mounting concerns over the US economy.

However, a strengthening yen, which surged to a five-month high on safe-haven demand, may limit further upside for Japanese equities. On the data front, Japan posted a current account deficit in January for the first time in two years, as imports outpaced exports.

Additionally, inflation-adjusted real wages—a key measure of consumer purchasing power—fell 1.8% year-on-year, snapping two consecutive months of gains. Technology stocks led the rally, with Disco (+2.2%), Lasertec (+2.6%), and Advantest (+0.9%) posting solid gains.

Source: Trading Economics