Japanese equities surged on Wednesday, extending the previous session's gains as upbeat global market sentiment fueled broad-based buying. The Nikkei 225 Index jumped 3.66% to close at 66,300, while the broader Topix Index gained 2.13% to finish at 4,046.

Investor confidence was lifted by a strong performance on Wall Street, where the Dow Jones Industrial Average and the S&P 500 closed at record highs. Sentiment also improved after oil prices fell sharply on growing optimism that the US and Iran could reach an interim agreement to reopen the Strait of Hormuz, easing concerns over global energy supply disruptions.

At home, economic data provided additional support after Japan's real wages increased for a sixth consecutive month in June, reinforcing expectations that the Bank of Japan may continue raising interest rates in the months ahead.

Technology stocks led the rally, with Kioxia Holdings climbing 7.4%, Ibiden soaring 24.5%, Advantest gaining 8.8%, Lasertec advancing 5.9%, and SoftBank Group surging 14%.

Gains were also broad-based across other sectors. JX Advanced Metals rose 9.5%, Mitsubishi UFJ Financial Group added 2.1%, and Fanuc Corp advanced 4.4%, reflecting stronger risk appetite and growing optimism over both the global and domestic economic outlook.