Tokyo stocks closed higher on Monday after the Bank of Japan's key business confidence survey showed improvement for the second straight quarter.
The benchmark Nikkei 225 index advanced 0.30 percent or 79.92 points to end at 26,732.44, while the broader Topix index climbed 0.48 percent or 8.51 points to 1,790.52.
The Bank of Japan's December Tankan business survey -- a quarterly poll of about 10,000 companies -- showed a reading of minus 10 among big manufacturers, after recording minus 27 in the previous survey and minus 34 in the June survey.
The latest figure, released 10 minutes before the opening bell, beat the market consensus of minus 15.
"Investors were encouraged by the BoJ Tankan improving for the second straight quarter," senior strategist Yoshihiro Ito of Okasan Online Securities said in a commentary.
The gains were however limited after reports the government would suspend Tokyo and central Nagoya city from its domestic travel campaign due to rising numbers of coronavirus cases.
The dollar fetched 104.00 yen in Asian trade, against 104.01 yen in New York late Friday.
Wall Street stocks finished mostly lower Friday on disappointment over the lack of progress on a US stimulus bill.
In Tokyo, market heavyweight SoftBank Group rose 2.21 percent to 8,088 yen while Uniqlo casual wear operator Fast Retailing was up 0.32 percent to 84,300 yen.
Toyota gained 1.68 percent to 7,952 yen while Nissan climbed 0.93 percent to 559.3 yen.
Tokyo, Japan | AFP