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The Nikkei average rallied 1 percent to 38,482.11 as Bank of Japan Governor Kazuo Ueda hinted at the possibility of an upcoming interest rate increase in July. The broader Topix index finished 0.58 percent higher at 2,715.76.
Chip-making equipment maker Tokyo Electron jumped 2.7 percent and electronic parts maker TDK surged 6.3 percent.
Toyota Motor rose half a percent after Akio Toyoda, grandson of Toyota Motor Corp's founder, won shareholders' approval to stay at automaker's helm.
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