Tokyo stocks jumped 1.07 percent on Tuesday morning, lifted by brighter economic data for the United States and Japan.
The benchmark Nikkei 225 index added 147.72 points to 14,000.22, while the broader Topix index of all first-section shares climbed 1.11 percent, or 12.75 points, to 1,163.45.
Kenichi Hirano, operating officer at Tachibana Securities, said the Nikkei has likely hit its bottom after weeks of wild volatility that has seen it dive 20 percent from a five-year high struck in late May.
"The second round of the rally has since begun," Hirano told Dow Jones Newswires.
"As US markets' reaction to signs of possible tapering of quantitative easing and improved US economic data are more positive and worries over China ease, the Nikkei should be back on track to advance at a pace of 800 points or so per month."
In the United States the ISM purchasing managers index rose to 50.9 in June from a contraction reading of 49.0 in May but manufacturing employment fell.
The Dow Jones Industrial Average gained 0.44 percent to close at 14,974.96, as investors try to gauge when the Fed will start rolling back its huge stimulus drive.
In Japan, the Nikkei rose 1.28 percent Monday following a big jump in the Bank of Japan's quarterly business confidence survey that indicated efforts to boost the economy could be paying off.
In Tokyo, trading giant Mitsubishi rose 3.09 percent to 1,768 yen after announcing it was among the investors in a $2.0 billion buyout of a US power plant.
On currency markets, the dollar was at 99.58 yen against 99.66 yen in New York late Monday.
-- Dow Jones Newswires contributed to this article --