Tokyo stocks were 0.88 percent higher on Friday morning as a weakening yen boosted exporters while investors were also looking to Washington for progress on talks to avert the fiscal cliff.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange added 82.61 points to 9,483.49, while the broader Topix index of all first-section shares climbed 0.69 percent, or 5.39 points, to 784.83.
The Tokyo market was buoyed by optimism over the US economy with talks on averting the "fiscal cliff" of tax hikes and spending cuts under way in Washington and a US estimate of third-quarter economic growth revised upward.
"It's an essentially quiet end-of-the-month session, with book-closings and window-dressing helping to boost trading volume," said an equity trading director at a foreign brokerage.
Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, added: "Stocks are likely to extend their recent bullish trend".
Markets reacted little to a batch of October economic data which showed industrial production logged a surprise 1.8 percent rise last month with the unemployment rate holding steady.
Also Friday, Japan's cabinet approved a $10.7 billion economic stimulus package just weeks before an election the ruling party is expected to lose, but analysts questioned its likely benefits.
The new spending was more than double a package announced in October as the country gets set for polls that most say will usher in Japan's seventh prime minister in six years.
"While (the package) wouldn't be a poison, it wouldn't be a medicine either," Masamichi Adachi, a senior economist at JPMorgan Securities, told Dow Jones Newsiwires.
Among major exporters Nissan Motor climbed 1.38 percent to 803 yen and Canon jumped 2.10 percent to 2,909 yen.
Hitachi was up 3.71 percent at 474 yen and Mitsubishi Heavy Industries rose 1.61 percent to 378 yen after the pair announced Thursday that they would merge their thermal power businesses.
In forex trading, the dollar firmed to 82.43 yen from 82.10 yen in New York late Thursday.
The euro, which earlier Friday hit a new seven-month high of 107.27 yen, was at 107.l5 yen from 106.58 yen in US trade, while the 17-nation currency bought $1.2990 from $1.2978.