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Prime Minister Abe may introduce tough reforms following Sunday's election result.
Shares in Tokyo rose, leading other Asian markets, after Prime Minister Shinzo Abe was given a vote of confidence for his economic policy known as "Abenomics".
Mr Abe won a majority in parliament's upper house in Sunday's elections, according to exit polls.
The Nikkei 225 index rose 0.8% to 14,691.64, after climbing 1.2% earlier.
Mr Abe's policies are aimed at ending long-running deflation in Japan and boosting growth.
"We've won the public's support for decisive and stable politics so that we can pursue our economic policies, and we will make sure to live up to the expectations," Mr Abe told public broadcaster NHK after he was projected to win.
Analysts said Mr Abe could now work to implement painful economic reforms referred to as the "Third Arrow" of his set of policies. The first two arrows were an ultra-loose monetary policy and government spending.
"Abe's victory was widely expected, but it gives a positive lead to the market as it raises expectations that legislation will pass more easily and he can focus on revitalising the economy," said Takuya Takahashi, from Daiwa Securities.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23401377#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
