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Tokyo - Asian stocks closed higher on Monday, marking a sixth-straight winning session for the benchmark index as traders cast off early losses to extend a global rally.
The Japanese market bounced back last week after suffering a bloodletting in the wake of Britain's shock vote to the leave the European Union.
The optimism was largely driven by officials in Japan and elsewhere vowing to launch stimulus measures to prop up financial markets shaken by the referendum result.
On Monday, the Nikkei 225 index advanced 0.60%, or 93.32 points, to finish at 15 775.80 - it is now up 5.5% from its close on June 24, when the referendum result was announced.
The broader Topix index of all first-section shares rose 0.60%, or 7.53 points, to 1 261.97.
The Nikkei and Topix each rallied more than 4% last week after plunging on the Brexit vote.
"While Brexit will have long-term impact on the market, the situation is returning to normal," said Hideyuki Suzuki, head of investment information department at SBI Securities.
"The pace of the rebound in Japanese share prices lagged other bourses... so investors may keep buying back shares," he added.
Soichiro Monji, general manager for the economic department at Daiwa SB Investments, added that "people have started to understand that the economic impact of the Brexit may not be not so huge judging by the size of the UK economy".
"That's why stocks will not fall further," he told Bloomberg News.
Airbag defect
Japan's weak inflation data and a lacklustre business confidence report on Friday also added to hopes for more stimulus after the Bank of Japan meets this month, which would tend to weaken the yen and boost stocks.
In share trading, Uniqlo operator Fast Retailing, a market heavyweight, closed up 1.26% at 27 705 yen and Toyota rose 0.39% to 5 127 yen.
Cosmetics maker Shiseido gained 1.98% to 2 773.5 yen after it announced a licensing deal with Dolce & Gabbana to distribute its fragrance lines.
Takata jumped 3.77% to 385 yen as the scandal-hit airbag supplier's chief executive agreed to a 30% pay cut for a year as recall costs mount.
Shigehisa Takada has also signalled he is ready to step down over an airbag defect scandal linked to at least 13 deaths and scores of injuries globally.
Konica Minolta sank 2.00% to 732 yen after SMBC Nikko Securities lowered its price target on the camera maker.
On currency markets, the dollar edged up to 102.65 yen on Monday from 102.52 yen in New York late Friday.
