Most Asian markets traded higher in the morning, led by Japanese stocks as the yen weakened to yet another record low against the dollar on renewed fiscal stimulus optimism after the Bank of Japan governor announced his early departure.
The Nikkei average index climbed 3.11 percent or 343.91 points to11390.83 while South Korea's KOSPI rose 0.07 percent or 1.43 points to 1939.61. Australia's S&P/ASX 200 added 0.91 percent or 44.20 to 4926.90.
In China, the Shanghai Composite Index eased 0.01 percent or 0.33 points to 2432.80. Hong Kong's Hang Seng was up 0.49 percent or 114.58 points to 23263.11.
Wall Street had closed higher earlier rebounding from the previous session's eurozone-prompted losses as technology major Dell's buyout news boosted investor confidence.
This had already set the stage for a robust Asian market performance, but the sentiments were pushed even higher after the yen weakened to its lowest level in almost three years during the day.
The dollar surged 0.17 percent to trade at ¥93.79 from the ¥93.43 reached during the North American trading session. The single currency traded at ¥127.40.
The yen's renewed downward movement began after Bank of Japan's governor Masaaki Shirakawa said that he will step down from his post on 19 March, a few weeks earlier than expected.
Shirakawa's fiscal policies, which remained largely conventional and resisted aggressive stimulus injection, were considered to be ineffective to boost Japan's lagging economy by many investors. His departure gives the country's newly elected pro-stimulus government the freedom to appoint a new governor, who would be more accommodative to its fiscal strategies.
This, in effect, boosted hopes that more stimulus measures will soon be introduced, pressuring the local currency and boosting exporter stocks in the market.
"Looking ahead, we forecast the yen to depreciate to 95 against the dollar by mid-year as investors' appetite for risk continues to grow," said John Higgins, economist at Capital Economics.
"Although the crisis in the euro-zone could obviously flare up at any time, our baseline assumption is that tensions will generally ease in the region through the end of the second quarter, even if there are a few more wobbles along the way".
Meanwhile, the world's largest carmaker Toyota gave investors another reason to cheer, reporting solid third-quarter performance and upgrading the full-year forecasts. The firm's improved results point to a pickup in the key US and Japanese markets, which helped to counter the slump in Chinese demand after the recent territorial disputes.
Shipping related firms traded higher in Tokyo. Mitsui Engineering & Shipbuilding Company gained 13.33 percent while Kawasaki Kisen Kaisha added 9.58 percent. Automobile sector traded higher with Toyota gaining 4.96 percent and Nissan rising 5.24 percent.
But South Korean automobile firms fell on their Japanese counterparts' gains. Hyundai slipped 1.47 percent while Kia declined 1.37 percent.
Financial firms traded higher in Hong Kong. Hang Seng Bank was up 1.45 percent while Bank of East Asia climbed 1.44 percent. Bank of Communications added 1.10 percent.