Tokyo's benchmark Nikkei index jumped more than two percent on Tuesday, extending rallies on Wall Street, as some of the world's worst-hit countries reported falling coronavirus death rates.
The Nikkei 225 index, which surged more than four percent on Monday, advanced 2.01 percent, or 373.88 points, to close at 18,950.18, while the broader Topix index was up 1.96 percent, or 26.91 points, at 1,403.21.
The Nikkei index temporarily topped three percent in early trade after global equity markets rebounded strongly.
But a decline in US stock index futures triggered profit-taking in the afternoon, eroding part of the early gains, brokers said.
Traders in Japan were also buoyed by the unveiling late Monday of an unprecedented stimulus package worth around 108 trillion yen ($1 trillion), or 20 percent of GDP in the world's third-largest economy.
Prime Minister Shinzo Abe is expected to officially confirm a state of emergency in seven key regions of the country on Tuesday that will hand local authorities the power to request people stay at home.
"Investors are encouraged by the package, which sustained... the market," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
"But trading is expected to remain cautious for the time being as the outlook for the coronavirus impact is still uncertain," Horiuchi told AFP.
In Tokyo, some high-tech firms were higher with chip-making equipment manufacturer Tokyo Electron jumping 5.68 percent to 22,105 yen and parts maker Murata Manufacturing up 3.44 percent at 5,622 yen.
Sony gained 2.13 percent to 6,690 yen while Toyota rose 0.57 percent to 6,618 yen, with Nintendo up 0.62 percent at 43,190 yen.
Japan's household spending in February was down 0.3 percent from a year earlier, according to official data released by the internal affairs ministry.
The dollar fetched 108.77 yen in Asian afternoon trade, against 109.23 yen in New York late Monday.