Nikkei share average gained 1.04% to 28,456.59, its highest finish since 1990. The broader Topix edged up 0.35% to 1,864.40, also marking a five-day winning streak.
Renesas Electronics rose 4.7% to bring its gains so far this week to more than 10%.
While semiconductor-related shares have benefited from virus lockdowns, they have gained additional boost from an increase in demand for chips for cars, said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley.
“Investors are buying chip device manufacturing shares globally due to an unexpected recovery in demand for cars,” Fujito said.
Electrical equipment maker Yaskawa Electric rose 4.4% after it raised its operating profit forecast on healthy demand for chips and electronic components in China.
On the other hand, a shortage of chips for cars is starting to weigh on automaker shares.
Chip shortage had forced Japan‘s largest automaker to cut production of its Tundra pickup truck at its San Antonio plant in Texas.
Seven & I Holdings ended flat despite a positive earnings outlook.
Toho Co, the film distributor of “Demon Slayer”, plunged 6.7% after it raised its profit forecast on the success of the animated film, which shattered a box-office record in Japan, with investors taking profits on the news.