Japan's benchmark stock index exceeded the 38,800-mark at one point on Friday morning, setting a new 34-year high and approaching the intraday historical high.

Buy orders were placed on a wide range of shares, mainly semiconductor-related ones, and soared shortly after the start of morning trading on Friday. The move followed a rise in a range of stock indexes on Wall Street on Thursday.

The Nikkei 225 surged 700 points and briefly topped the 38,800-mark for the first time since January 1990. The index's record intraday high of 38,957 came on December 29, 1989.

The index ended the morning session at 38,505, up 347 points, from Thursday.

Market analysts say while speculative moves expecting a further surge are apparent, sell orders began coming over concerns of possible overheating of the market.