Tokyo stocks opened 0.43 percent higher on Wednesday as risk appetite grew on a weak yen and receding concerns over Europe's sovereign debt problems.
The Nikkei 225 index at the Tokyo Stock Exchange was up 47.25 points at 10,913.97 at the start.
There was a broad improvement in risk-taking sentiment as Europe's sovereign debt problems showed signs of healing and as the yen remained weak, said Hideyuki Ishiguro, senior strategist at investment at Okasan Securities.
"Europe's problems have eased quite a bit," he said, pointing to European data Tuesday showing net lending by central banks to credit institutions had fallen in the latest sign of easing tensions in the financial system.
The data showed the size of the balance sheet of the Eurosystem, consisting of the European Central Bank and the 17 eurozone national central banks, has fallen to its lowest level in almost a year.
"The global economy is in a trend of improving. A shift to stocks from bonds is likely to take place," Ishiguro said.
US stocks rose Tuesday, with the Dow Jones Industrial Average hitting a fresh five-year high of 13,954.42, just 1.5 percent below its all-time closing high on October 9, 2007.
The dollar was changing hands at 90.81 yen in early Asian trade Wednesday against 90.72 yen in New York Tuesday afternoon.
The euro was at 122.48 yen and $1.3480 against 122.42 yen and $1.3493 in US trade.
-- Dow Jones Newswires contributed to this article --