The Nikkei 225 Index increased by 0.6%, surpassing 66,000 on Wednesday, building on gains from the prior session as declining oil prices alleviated worries regarding imminent inflationary pressures. Japanese stocks mirrored the gains observed on Wall Street overnight, influenced by a significant decline in long-term Treasury yields. Meanwhile, investors remained on the lookout for more clarity regarding the US government’s fiscal reform plans.

Meanwhile, traders anticipated chip giant Nvidia’s earnings report later in the global day for new insights into the robustness of artificial intelligence-related demand. Among individual stocks, notable gains were observed in Advantest at 2%, SoftBank Group at 2.7%, and Mitsubishi UFJ at 1.6%.

In corporate news, Terra Drone experienced a notable increase of over 20% following the selection by Japan’s Acquisition, Technology & Logistics Agency. The agency has chosen the aircraft company to provide the Japan Self-defence Forces with its Terra B1 interceptor drone as part of a fast-tracked initiative designed to enhance counter-uncrewed aircraft capabilities.