The tech-heavy Nikkei 225 Index jumped 1.3% to 50,867.58. The broader Topix edged 0.03% higher.
All three major U.S. stock indexes closed at record highs after Nvidia said it will build artificial intelligence supercomputers for the U.S. energy department.
Shares of Microsoft jumped after the tech company reached a deal that permits OpenAI to restructure into a public benefit corporation while giving Microsoft a 27% stake in the ChatGPT maker.
The largest percentage gainers in the Nikkei were chip sector heavyweights Advantest, up 15.5%, followed by Lasertec, which jumped 5.9%.
The largest losers were Nidec down 4.5%, followed by SHIFT, which lost 4.1%. A firmer yen, however, acted as a headwind for most companies. There were 52 advancers in the Nikkei index against 173 decliners.