The Nikkei 225 index has closed at 10,489.89, up 403.13 points.
Dealers say the index was boosted by Wall Street's overnight gains following the release of better-than-expected US October retail sales data.
The dollar was at 121.80 yen in Tokyo trading, up from 121.58 in late New York trading; and at 0.8822 against the euro, compared with 0.8824 in New York.
Government bond yields were flat to lower, with bond No 233 yielding 1.29 per cent, unchanged from yesterday; and bond No 234 yielding 1.32 per cent, down from 1.33 per cent yesterday.
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The US government 30-year bond was at 105-11/32, yielding 5.025 per cent, up from 105-10/32, yielding 5.03 per cent, in late New York trade.