Tokyo’s markets also saw gains.
The Nikkei 225 was up 1.19 percent to 17,046.78, ending the session above 17,000 for the first time in nearly two months.
The Topix index was 1.48 percent higher to 1,639.79, while the Mothers market of small and mid-caps added 2.83 percent to 756.29.
The gains came on advances in the banking sector after US bank Citigroup (NYSE: C) said that earnings will return to “normal” in the current quarter.
Also helping gains was a prediction by former US Federal Reserve chairman Alan Greenspan that the credit slump could be over, and new data from the US signaled a possible further cut in interest rates.
Among banks, Mizuho (TYO: 8411; NYSE: MFG) added 2.6 percent to ¥661,000 while Sumitomo Mitsui (TYO: 8316) gained 3.9 percent to ¥915,000 and Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was up 5.6 percent to ¥1,114.
Elsewhere, electronics giant Sony (TYO: 6758; NYSE: SNE) was 4.3 percent higher to ¥5,890 on Monday’s announcement that the initial public offering of its insurance division had brought in ¥320 billion as well as on the news that it will partner with the Qimonda unit of Infineon (FWB: IFX; NYSE: IFX) to develop DRAM chips for cameras and mobile phones.
Chipmaker Elpida (TYO: 6665) dropped 3.7 percent to ¥3,940 on concerns that it could lose market share to the new partnership.
On the other hand, companies that make chip-testing equipment saw gains.
Tokyo Electron (TYO: 8035) was 4.3 percent higher to ¥7,560 while Advantest (TYO: 6857; NYSE: ATE) added 5 percent to ¥3,750.