The Nikkei average jumped 1.80 percent to 38,062.92 after having snapped a five-day winning streak the previous day. The broader Topix index settled 1.11 percent higher at 2,670.54.
Land transportation shares were in focus, with East Japan Railway and West Japan Railway rising around 2 percent each after data showed the number of passengers on express and limited express trains during this summer's Bon holiday period in Japan rose 7 percent from a year earlier.
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