Japan's Nikkei 225 average rose 0.7% to 16,563.51, aided by a higher close on Wall Street for the second straight day, while the broader Topix index advanced 1% to 1,585.86.

Shares of Nintendo soared 6.4% after Goldman Sachs said that the company might post better first-half operating profits Thursday than it forecast earlier.

We think the prospect of sustained earnings growth remains high even after factoring in a change to forex assumptions to factor in a stronger yen, said Goldman Sachs in a note.

Honda shares advanced 2.4% after the Nikkei business daily reported that it plans to sharply increase worldwide sales of hybrid cars by rolling out models that cost only 200,000 yen ($1,744) more than the gas-powered models.

Investment Goldman sachs Japan Nintendo