Asian markets mostly fell Wednesday but Tokyo reversed early selling to add to the 10 percent rally since the Bank of Japan's surprise monetary easing announcement last week, SIA reports.
The Nikkei's late advance came as the dollar hit a seven-year high against the yen in response to news Republicans had captured both houses of the US Congress and the head of the BoJ reasserted his determination to beat deflation.
Wall Street's lead was neutral following a disappointing batch of economic indicators, while the euro edged up despite news that the European Commission had slashed its growth outlook for this year.
Tokyo added 0.44 percent, or 74.85 points, to 16,937.32.
However, Seoul slipped 0.19 percent, or 3.76 points, to 1,931.43 and Shanghai gave up 0.47 percent, or 11.42 points, to 2,419.25. Sydney was flat, edging down 2.0 points to 5,517.9.
Hong Kong gave up 0.63 percent, or 150.04 points, to end at 23,695.62.
Japanese shares enjoyed a huge boost and the yen tumbled after the BoJ decision Friday, which will see vast sums of extra money pumped into the economy in a bid to tackle deflation and avert another recession.
Also fuelling the buying was news that the country's public pension fund -- the world's biggest -- will double the amount of equities in its investment portfolio.
While profit-taking pared some of the dollar's and the Nikkei's recent gains early Wednesday, news that Republicans had taken control of the Senate from Democrats sent both rising again.
Adding to yen-selling sentiment was a speech by BoJ boss Haruhiko Kuroda that indicated the bank was prepared to do whatever was needed to hit a 2.0 percent inflation target by next year.
"In order to completely overcome the chronic disease of deflation, medicine should be taken until the end," he said in Tokyo. "A half-baked medical treatment will only worsen the symptoms."