Market players said the Nikkei was likely to trade between 11,900 to 12,100 on Thursday after ending 2.1 percent higher at 11,932.27. If it trades above 12,000, it will be the first time since September 2008.

Nikkei futures in Chicago closed at 12,085, up 1.3 percent from the close in Osaka of 11,930.

"People are focused on the Nikkei futures' high close in Chicago," said Yutaka Miura, a senior technical analyst at Mizuho Securities, adding that the market is likely to see strong buying in early trade. "US stocks ended higher and there are hopes for the recovering US economy, but as Japanese stocks have risen sharply in a short period of time, it's not surprising if people become cautious and take some profits later."

On Thursday, exporters are likely to gain as the dollar hit a one-week high against the yen to 94.11 after a report showed US private-sector employers added 198,000 jobs in February. It last traded at 93.94.

Wall Street mostly edged higher on Wednesday, with the Dow hitting another record, helped by the private payroll survey that bodes well for the monthly jobs report due on Friday.

The Nikkei has gained about 15 percent this year, outperforming its global peers as the yen weakened on a determined monetary easing campaign by (now) Prime Minister Shinzo Abe.

The Dow has added 9.1 percent, the Standard & Poor's 500 Index has gained 8.1 percent while the pan-European FTSEurofirst 300 index has advanced 4.6 percent over the same period. > Dow ends at another record high, S&P up on job picture  > Euro retreats vs dollar as ECB seen flagging future easing > Prices fall on private jobs data ahead of debt supply  > Gold up, faces headwind from Wall Street rally