Japanese stock markets moved higher, supported by sustained optimism regarding artificial intelligence demand and following gains in U.S. technology shares. The technology and electronics sectors were at the forefront of the market's advance.

Tokyo Electron Ltd shares rose by 4.9%, while SoftBank Group Corp shares gained 3.8%. The U.S. dollar was trading at 162.65 yen, compared to 162.24 yen at the close of trading in Tokyo on Tuesday.

Market participants are closely monitoring any developments in U.S.-Iran peace talks, as well as any commentary from Japanese government officials regarding the yen's depreciation.

The Nikkei 225 index climbed 2.3% to close at 71,701.04 points.