Tokyo stocks were 1.27 percent higher on Tuesday morning as a weak yen helped boost the market which surged last week following a return to power for the country's conservatives.
The benchmark Nikkei 225 index added 126.55 points at 10,066.61 by the break, while the broader Topix index of all first-section shares climbed 0.85 percent, or 7.07 points, to 839.79.
A strong yen is a negative for Japanese markets as it erodes exporters' revenue and makes their products less competitive overseas.
The yen had dipped against the dollar and the euro on Monday after Japan's incoming prime minister Shinzo Abe, whose Liberal Democratic Party won a landslide national election last week, renewed calls on the Bank of Japan to take further steps to ease monetary policy.
Abe at the weekend threatened to change a law guaranteeing the bank's independence if it did not agree to set a two-percent inflation target as he requested in a bid to drag the country out of the deflation that has haunted its economy for years. Japanese markets were closed Monday for a holiday.
In forex trading, the dollar stood at 84.74 yen, slightly lower than 84.82 yen in New York on Monday, where the greenback had climbed to the 85 yen level, last seen in April 2011.
The euro fetched 111.69 yen and $1.3178 from 111.87 yen and $1.3183 in US trade.
The Dow Jones Industrial Average ended a shortened Christmas Eve session Monday down 0.39 percent at 13,139.08 amid pessimism about prospects of a deal to avert the US "fiscal cliff" due to take effect in January.
"The fact that the discussions apparently remain bogged down is a negative, but the overarching factor for stocks -- a cheaper yen -- trumps everything else," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities in Tokyo.
Divided US lawmakers have until the end of the year to reach a deal to avert the fiscal cliff, a combination of steep tax hikes and spending cuts which threatens to drag the world's largest economy into recession.
-- Dow Jones Newswires contributed to this article --