Japan's Nikkei 225 surged to a record high, crossing 59,000 points for the first time ever. The milestone came as investors cooled their bets on further Bank of Japan rate hikes and technology stocks gained momentum following strong earnings from Nvidia. The broader Topix index also hit a record, rising 1.5% to 3,903.35 points.

Market gains reflected increasing doubts about more BOJ rate increases, especially after the government nominated two "reflationary" academics to the central bank's board. Tochiro Asada and Ayano Sato support lower interest rates and more stimulus. Their appointments signaled looser monetary and fiscal conditions under Prime Minister Sanae Takaichi, who promised growth measures including more fiscal spending and tax relief.

Japanese technology shares boosted the Nikkei, with SoftBank Group rising over 4%. Following Nvidia's strong quarterly results and positive outlook, investors continued betting on sustained AI demand driving the tech sector. However, some Japanese chipmaking stocks lagged as concerns grew about near-term AI chip demand after Nvidia's inventory increases.