The benchmark index for the Tokyo Stock Exchange hit another all-time high on Thursday. An overnight rally in New York helped fuel the gains as investors cheered the US Federal Reserve's expectation of three rate cuts this year.

The Nikkei 225 ended at 40,815, up 2 percent from Tuesday. Japan's markets were closed on Wednesday for a national holiday.

Semiconductor shares and export-related firms led the gains as the yen depreciated against the dollar.

The weakness of the Japanese currency comes after the BOJ said it would sustain easy money conditions, and be cautious about repeatedly raising rates.

Japan's finance minister Suzuki Shunichi told reporters: "It is important that foreign exchange markets move in a stable manner. The government will carefully monitor the situation."

The Japanese currency was trading at around the 151-yen level against the dollar on Thursday.