Japanese equities extended the rally that's taken the Nikkei 225 to a record high as the yen remains lower and Warren Buffett's endorsement of trading companies buoys the market.

Topix Index rose 0.5% to 2,673.62 as of market close Tokyo time.

Nikkei advanced 0.3% to 39,233.71.

Toyota Motor Corp. contributed the most to the Topix Index gain, increasing 1.2%. Out of 2,152 stocks in the index, 1,064 rose and 979 fell, while 109 were unchanged.

"The yen continues to depreciate, and the end of the fiscal year is approaching, so stocks with high valuations and those around semiconductors and materials are being bought," said Masayuki Otani, chief market strategist at Securities Japan.

A number of trading houses such as Mitsubishi and Marubeni were up as Buffett mentioned in his letter to investors the companies follow shareholder-friendly policies that are "superior" to those practiced in the US. Berkshire Hathaway reported $8 billion of unrealized gain in the nation's five largest trading houses.

Buffett's words had a "very positive impact on Japan and the Japanese stock market," said Mineo Bito, president of Bito Financial Services. "In that sense, Buffett was the catalyst for the Japanese market's rise, and I think he will continue to buy into the trading houses." 

Retail companies also rose as drug store chains Tsuruha and Welica advanced after a report the companies are considering a possible merger. 

Source : Bloomberg