"We have an index target of 15,100 for next three months. Six months, we're looking at 16,100 and then in the one-year time horizon, we're looking at 18,500," said Sailesh Jha, chief strategist at Arcus Capital Singapore.
Continued hopes of "Abenomics" underpinned a rally in real estate stocks. Heiwa Real Estate surged 9 percent while the Japan Retail Fund rose 8 percent as investors cheer the Bank of Japan's pledge to purchase financial assets, including real estate investment trusts, to create inflation and growth.
Nippon Sheet Glass tanked 5 percent after posting weak earnings guidance for the current business year.
Australia Edges Up
Shares of engineering giant WorleyParsons, tumbled 12.5 percent after cutting its profit guidance, citing softening demand for resource infrastructure. This led to declines across construction stocks with Macmahon Holdings slipping 9 percent.
Resource stocks reversed previous losses after the Australian dollar hit a fresh 11-month low of 0.9733 against the greenback. A weaker Aussie lowers costs for miners and boosts their U.S dollar earnings. BHP Billiton and Fortescue Metals jumped 2 percent each.
— By CNBC.com's Nyshka Chandran . Follow her on Twitter @NyshkaCNBC