Japanese stocks saw a wave of strong gains in early trading Monday, with the Nikkei 225 breaking through key levels in one fell swoop, extending tech-driven gains, while favorable economic reports also boosted investor confidence in the economy and the Bank of Japan.。

Nikkei 225 up as high as 0.8%, at one point soaring to 40,308.0 points, breaking the 40,000-point mark for the first time to a record high。

Technology companies continue to lead the index, with stocks in chipmaking and related areas continuing to rise, with artificial intelligence demand expectations driving the rally。

In this market, Nippon Electric, maker of chip test equipment, rose 3.7%, near all-time high; Tokyo Electron also hit three-year high; SoftBank Group also traded at nearly three-year high。

Boosted by technology stocks, the Nasdaq hit a new all-time high on Friday, giving the Japanese stock market a good start。

Japan's Economy Considered Solid, Inflation Expected to Slow。Key economic data released on Monday also showed bullish sentiment on the Japanese market。

Japan's capital spending rose much more than expected in the fourth quarter, up 16.4%, business spending remains firm despite an unexpected decline in economic growth。

Other data showed that Japan's monetary base money supply, a key predictor of inflation trends, unexpectedly fell to a six-month low in February.。The report comes as Japan's inflation trend has generally weakened, providing less support for the Bank of Japan to adopt an aggressive monetary policy.。

Although the central bank is expected to raise ultra-low interest rates in April, monetary conditions are likely to remain accommodative, creating a further favorable environment for Japanese stocks.。