Japan's Topix index advanced for a sixth consecutive session on Monday, buoyed by a drop in oil prices and robust global market performance that lifted investor sentiment.

The Topix closed 0.50% higher at 4,084.74 points, marking its longest winning streak since August 2025.

The tech-heavy Nikkei 225 index, however, showed little clear direction and closed essentially flat at 69,737.69 points.

Investors maintained a cautious watch on central bank policy outlooks, with the Federal Reserve under Chairman Wash sending hawkish signals, while the Bank of Japan is expected to continue tightening monetary policy.

Concurrently, market anxieties were eased by increased production targets for crude oil and the reopening of the Strait of Hormuz.

The yen resumed its weakening trend, putting traders on alert for potential intervention by Tokyo authorities.

Japanese government bonds sold off sharply, with the benchmark 10-year yield rising to its highest level since October 1996.

Nomura Securities equity strategist Maki Sawada noted that while Wall Street was closed for a holiday on Friday, Japanese equities were supported by strong performances in European and other overseas markets.

"These factors, coupled with the downward trend in crude oil prices following OPEC+'s decision over the weekend to increase production, appear to be boosting investor sentiment," Sawada stated.

"The volatility in these AI and semiconductor-related stocks will continue to influence the Nikkei's ups and downs."

Shipping, automotive, and machinery sectors led the market higher.

Toyota Motor Corp shares rose 3.36%, while Mitsubishi Heavy Industries Ltd surged 8.39%.

Stocks in the technology supply sector were among the biggest decliners.

The largest loser was Taiyo Yuden Co Ltd, down 10.58%, followed by Ibiden Co Ltd, which fell 8.37%, and Murata Manufacturing Co Ltd, which dropped 7.49%.

Among the 225 components of the Nikkei 225 index, 177 stocks advanced while 48 declined.