Japanese stocks reached two-week highs on Monday amid the strengthening of the dollar against the yen, while Nomura Real Estate securities declined after reports that the Japan Post no longer considers buying a stake in the company.
Nikkei increased by 0.6% to 20,067.75 points - the highest close quotation since June 5.
The broader Topix index added 0.6%, ending the session at 1,606.07 points.
The dollar added 0.2%, holding above the 111 yen mark for most of the session, pushing up futures for US indices and supporting risk appetite in Asian deals.
The shares sensitive to domestic demand were among the stocks that showed the best dynamics.
Shares of construction companies Taisei Corp and Kajima Corp added 2.4% and 2.5% respectively.
Nomura Real Estate Holdings declined 14% after the company confirmed reports that the conglomerate Japan Post Holdings is likely to stop negotiating a stake in Nomura due to difficulties in negotiating the terms of the deal. Shares of Nomura jumped 20% in mid-May, after the first reports of a potential arrangement appeared.
Shares of large exporters finished trading in different directions. Shares of Toyota Motor Corp (T: 7203) slid 0.1%, Nissan Motor Co fell 0.9%, while Hitachi Ltd added 0.3%.
The different signals of the world's leading central banks regarding inflation and monetary policy led to the strengthening of the dollar and the euro against the yen, while traders were waiting for the speeches of a number of Fed officials this week.
The confidence of the head of the Fed, Janet Yellen, after the regulator raised rates for the third time in six months, surprised investors expecting more caution about the economy.
However, there are signs that the market does not believe in Fed forecasts, which showed that the central bank will be able to continue raising rates this year. Doubts on the regulator's representatives, whose speeches are expected this week, could hurt the dollar.