Tokyo stocks opened 1.53 percent higher on Tuesday with the lower yen heartening investors.
The Nikkei 225 index at the Tokyo Stock Exchange was up 152.29 points at 10,092.35 at the start following a continued correction in the strong yen.
A high yen is a negative for Japanese markets as it erodes exporters' revenue.
The yen dipped against the dollar and the euro Monday after Japan's incoming prime minister Shinzo Abe renewed calls on the central bank 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. Japan's markets were closed Monday for a holiday.
The dollar stood at 84.82 yen in early Asian trade, flat from New York Monday afternoon.
The euro fetched 111.79 yen and $1.3181 compared with 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.
The White House and 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 could pull the world's largest economy back into recession.
-- Dow Jones Newswires contributed to this article --