The Nikkei 225 Index jumped 1.2% to close at 37,845 while the broader Topix Index climbed 1.29% to 2,784 on Tuesday, extending recent gains and tracking Wall Street higher as US retail sales data eased recession concerns.

Japanese stocks also benefited from a weaker yen, which enhances the profit outlook for the country's export-driven industries and makes local assets more attractive to foreign investors.

Japanese trading firms led the charge after Warren Buffett's Berkshire Hathaway raised its holdings, including Mitsubishi Corp (3.8%) and Mitsui & Co (3.3%). Stronger performances were also seen from other index heavyweights such as Mitsubishi UFJ (3.8%), Advantest (2.7%), Toyota Motor (3%), Tokio Marine (5.5%), and Tokyo Electron (1.7%).

Source: Trading Economics