The Nikkei 225 gained 0.6% to surpass 38,000, while the broader Topix Index rose 0.8% to 2,805 on Wednesday, extending recent gains as investors awaited the Bank of Japan's latest monetary policy decision.

The central bank is widely expected to keep interest rates steady at 0.5% amid ongoing global economic and trade uncertainties. The monthly Reuters Tankan survey revealed that sentiment among Japanese manufacturers turned negative in March due to concerns over US tariff policies and economic weakness in China.

Meanwhile, data showed that Japan's trade balance swung to a surplus in February, driven by strong exports. Index heavyweights led the rally, with notable gains from Mitsubishi Heavy (2.5%), IHI Corp (2.8%), Mitsubishi Corp (3%), Toyota Motor (2.7%), and Recruit Holdings (3.1%).

Source : Trading Economics