Last week, Tokyo's benchmark Nikkei 225 made history by hitting its highest level in nearly 35 years.
Japan's stock market has hit a new high after surpassing its 1989 high last week following decades of stagnation.
Tokyo's benchmark Nikkei 225 index rose nearly 0.7 percent in morning trading Monday, extending a rally that has made Japanese stocks some of the hottest buys of the past year.
The top winners were Mitsubishi UFJ Financial Group and pharmaceutical company Daiichi Sankyo.
On Thursday, the Nikkei surpassed its all-time high of 38,915.8, reached in 1989 when the Japanese economy was on the brink of an asset crash that set in motion several “lost decades” of economic stagnation.
The Nikkei gained 28.2 percent for all of 2023, well ahead of the S&P500, which itself enjoyed an excellent year.
Foreign cash has flooded into Japanese stocks as investors take advantage of the cheap yen and corporate governance reforms that have boosted returns for shareholders.
However, Japan's overall economy has continued to struggle with anemic growth amid structural challenges including a shrinking population and a rigid workforce.
The Japanese economy officially entered recession earlier this month, ceding its place as the world's third-largest economy to Germany.
Elsewhere, other Asian markets fell on Monday.
Hong Kong's Hang Seng and Shanghai Composite fell 0.7 percent, while South Korea's Kospi fell 0.8 percent.
