Japan's Nikkei retakes 39,000 level for first time since mid-April

The broader was up 0.82% at 2768.04.

A milder last week has once again pricing in U.S. rate cuts as early as September, buoying global sentiment and in turn boosting Japanese .

, which Japan's market tends to track, saw stock indexes lock in weekly gains despite ending mixed on Friday. The Dow Jones Industrial Average closed at a record high.

Futures of U.S. stock indexes were also up during Tokyo trading time, which may also have provided investors with a "sense of confidence," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

The Nikkei hit an all-time high of 41,087.75 earlier this year before falling nearly 5% last month in its largest monthly drop since December 2022. It is up about 16% this year.

On Monday, buying was widespread, with 183 of the index's 225 constituents advancing. Gains narrowed, however, as investors sought to lock in profits.

Among individual shares, was up 0.9%, and chip-making equipment giant gained 0.7%.

, which manufactures chip silicon products among other things, jumped 4.2%.

AI-focused startup investor fell 2.8%.

, which counts U.S. artificial intelligence firm Nvidia among its customers, edged down 0.4% as investors awaited Nvidia's revenue results due later this week.

"If the market perceives (Nvidia's) outlook as better than expected, ...it will react with a rally in chip-related shares, not just in the U.S. but also in Japan," said Ichikawa.