The Japanese government is expected to approve a record initial budget Friday for the next fiscal year that will ramp up spending on defense and support for regional economies.

Japan's government is set to compile a record $734 billion budget for the fiscal year from April due to larger social security and debt-servicing costs, adding to the industrial world's heaviest debt,

Asia-Pacific stocks mostly rose Thursday, with several markets remaining closed for Boxing Day. Japan's Nikkei 225 rose 0.44%, while the Topix added 0.49%, a day after a report said the country was preparing a record $735 billion budget for its fiscal year starting in April.

Japanese Foreign Minister Takeshi Iwaya has met with top Chinese leaders during his visit to Beijing, the first since the heads of the two countries met at a summit in Peru last month