The benchmark Nikkei 225 index gained 0.71 percent, or 144.35 points, to end at 20,563.16, while the broader Topix index was up 0.61 percent, or 9.04 points, to 1,494.33.

"The Nikkei index grew following rises in the three major US indexes on Friday," Online Okasan Securities said in a note.

On Wall Street, the Dow ended up 1.2 percent while the broad-based S&P 500 jumped 1.44 percent. The tech-rich Nasdaq Composite Index increased 1.67 percent.

Investors are closely watching US Federal Reserve Chairman Jerome Powell's speech when he opens the central bank's annual Jackson Hole symposium later this week, said Shuji Hosoi, senior strategist at Daiwa Securities.

Other key events this week include US corporate earnings reports, mooted Japan-US ministerial trade talks in Washington, and US housing sales data, he noted.

Analysts also pointed to news that Washington and Beijing are working to revive trade talks as a positive factor for the Japanese market.

The dollar fetched 106.39 yen in Asian trade, against 106.36 yen in New York on Friday.

In Tokyo, banks were among the winners, with Mitsubishi UFJ Financial rising 1.30 percent to 505.3 yen and Mizuho Financial up 0.91 percent to 155.2 yen.

Carmakers also gained, with Nissan climbing 0.69 percent to 663.4 yen and Toyota 1.22 percent to 6,873 yen.