Foreign investors were net buyers for a second straight day, encouraged by further gains on Wall Street.
Less hawkish remarks by US Federal Reserve chairman Ben Bernanke helped ease some of the fears in the market that a Fed rate hike in August looms after an expected increase this month.
"Bernanke did not flag any increased risk of inflation," Sumitomo Trust and Banking analyst Norihiro Takemura said.
But Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, said it may be difficult for the Japanese market to sustain the Friday's gains which were largely technical.
"As a whole, the prospects for [US] monetary policy haven't changed, and the worries [about US raising interest rates further] are still out there," he said.
Toshiba jumped ¥44 to ¥724.
Seoul
Share prices closed 3.51 percent, posting the largest percentage gain since October 2004 on hopes the market has finally hit bottom after a roller-coaster ride.
Dealers said the market picked up speed after a firm start sparked by Wall Street's overnight gains, with foreign investors buying into the futures to provide additional support and hopes for a further advance.
The latest comments from US Federal Reserve chairman Ben Bernanke -- that higher energy costs may be driving prices but inflation remained within historic ranges -- helped steady sentiment on US markets.
The fear has been that the US Fed will hike rates and continue doing so for longer than expected but Bernanke's comments suggested the central bank is still taking a measured approach to inflation.
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