Tokyo stocks jumped more than two percent in early trade on Monday as investors applauded results from Greek polls, with the two main pro-bailout parties clinching enough votes to form a government.
The Nikkei 225 index at the Tokyo Stock Exchange was trading 2.10 percent higher, or 179.35 points, at 8,748.67 in the first half hour of trade.
The broader Topix index of all first-section shares was up 1.92 percent, or 14.01 points, at 740.59.
The results also sent the euro higher in Asian trade, as fears eased that a vote for anti-austerity parties could see Greece renege on its commitments under an international bailout plan, and ultimately exit the eurozone.
The single currency was buying $1.2710 and 100.74 yen, up from $1.2644 and 99.47 yen in New York trade on Friday.
Greece's conservative New Democracy party emerged as the frontrunner in Sunday's polls, paving the way for a pro-bailout coalition government.
"The Greece election results were a net-buy incentive for stocks," Kenichi Hirano, operating officer at Tachibana Securities, told Dow Jones Newswires, but added that "Greece's problems are far from over, however".
The vote in favour of parties that backed a European Union-International Monetary Fund bailout for Athens came amid a wave of anti-austerity sentiment in the debt-hit nation with many Greeks angry over painful reforms.
Sunday's crucial election was the second in six weeks in Greece after May 6 polls failed to produce a government, stirring fears that the political stalemate would paralyse efforts to bring Greece back from the brink.
Athens has been forced to seek bailouts twice in recent years amounting to about 347 billion euros ($442 billion), and European leaders warned Greece it must respect its international debt commitments or risk leaving the euro club.
On Sunday, Antonis Samaras, the leader of Greece's conservative New Democracy party, which preliminary official results showed in the lead with 30.04 percent, said "the country does not have a minute to lose."
"We ask all political forces which share the aim of keeping the country in the euro... to join a government of national unity."
Samaras's main rival Alexis Tsipras, head of the leftist anti-austerity party Syriza, who had said a victory would mean renegotiating the rescue plan or tearing it up, conceded defeat and ruled out joining any coalition.
Japanese markets were also awaiting details on Spain's 100-billion-euro ($125 billion) bank bailout, while investors are keeping an eye on a Group of 20 summit in Mexico and a US Federal Reserve policy meeting, dealers said.
Tokyo shares were also buoyed after gains on Wall Street, with the blue-chip Dow Jones Industrial Average adding 0.91 percent on Friday to 12,767.17.