Tokyo stocks opened 1.24 percent higher on Thursday following strong overnight gains on Wall Street and in Europe.
The Nikkei 225 index at the Tokyo Stock Exchange opened up 105.72 points at 8,639.25.
There are rising expectations that the European Central Bank and Federal Reserve will take policy measures to support the economy down the road, said Hiroichi Nishi, general manager of equity division at SMBC Nikko Securities.
"Caution over Europe's sovereign debt problems and a global economic slowdown has eased," Nishi said.
"A weaker yen will likely prompt a rebound in the index that had fallen too much (over the last few weeks)."
The euro fetched $1.2574 and 99.68 yen in early Asian trade, compared with $1.2580 and 99.63 yen late Wednesday in New York where the common currency rose on hopes of ECB action to help quell eurozone financial turmoil.
The dollar was at 79.27 yen against 79.20 yen.
Although the ECB kept interest rates steady Wednesday, ECB president Draghi opened the door to lower rates as soon as next month.
And Atlanta Federal Reserve president Dennis Lockhart said with the US economic recovery threatened by an array of negative developments, the Fed may need to consider additional stimulus measures.
San Francisco Fed President John Williams also said the Fed must stand ready to do more if the US growth outlook worsens.
The Dow Jones Industrial Average finished up 286.84 points, or 2.37 percent, to 12,414.79.
-- Dow Jones Newswires contributed to this report --