Warren Buffett increases bets on Japanese stocks after receiving more than 50 percent return over the past three years. He has doubled down his investment in five Japanese trading houses.
In South Korea, the Kospi recovered from earlier losses to trade up 0.17 percent. Hundreds of thousands people rallied in Seoul at the weekend for the fifth straight week of protests against President Park Geun-hye, who is embroiled in a scandal over influence-peddling.
In the wake of the report, the yen weakened, with the dollar/yen pair rising as high as 106.53, compared with levels near 105.12 in mid-morning trade on Wednesday and its last close at 104.64. But by 11:43 a.m. HK/SIN, the dollar/yen pair retreated to 105.83.
In a dollar rally that began last July the single currency has lost around a quarter of its value, and there is little sign of that bottoming out. Deutsche Bank on Tuesday forecast a fall to 85 US cents by the end of 2017.
Japanese stocks rallied on Wednesday after Wall Street hit a record closing-high on the back of data pointing to rapid momentum in the US economy, which boosted risk appetite and lent weight to last week's positive assessment by the Federal Reserve.
The Nikkei benchmark ended 1.2 percent higher to 17,459.85, the highest closing price since November 14. The benchmark gained 0.6 percent for the week and jumped 6.4 percent for the month, the biggest monthly gain since last November.
The US dollar spiking above 101.20 yen for the first time since July was a clear green light to buy shares. The euro also climbed as far as 136.45 yen, highs not seen since October 2009.
The Nikkei dropped 0.5 percent to 14,520.11 in mid-morning trade after moving in and out of positive territory earlier. The index jumped 2.2 percent on the previous day, posting the biggest rise in two months.
Markets regained some stability after high volatility the past two weeks. They had been hit by concerns the Fed will weaken a stimulus commitment that's boosted risk appetites, and then by speculation Friday's jobs data would disappoint and cause worries about the US economy.
Japanese stocks jumped nearly 4% on Tuesday amid reports of progress in containing radiation from an earthquake-damaged nuclear plant, and the yen was broadly softer on the possibility of further intervention by major central banks.
Billionaire investor Warren Buffett said on Monday that Japanese stocks were good investments after the deadly earthquake that hit the world's third-biggest economy last week.
Japan's Nikkei average rallied 4.4% on Wednesday after the worst two-day selloff since the 1987 crash, with some investors scooping up shares even as many fretted that a further deterioration in nuclear crisis could undermine the market.
World stocks hit 2-1/2 month lows on Tuesday and oil fell and the yen surged after reports of rising radiation near Tokyo triggered a 10% fall in Japanese stocks, hurting risky assets across the board.
Japanese stocks plunged 12% on Tuesday as the country is dealing with multiple crises. The economic impact on the quake-stricken country and the global market is yet to be construed. Veteran on the market pulse, N Jayakumar of Prime Securities, in an exclusive interview with CNBC-TV18 shares what the Japanese crises mean to capital markets.
Japanese stocks plunged 12% on Tuesday on reports of rising radiation levels near Tokyo and lurched towards their biggest loss since the 1987 crash, in a panic selloff likely to compound the economic impact on the quake-stricken country.
Japanese stocks fell 7.6%, on track for the biggest daily loss since October 2008, and bond yields rose on Monday as investors expected the earthquake and tsunami that devastated the country's northeast to take an economic toll and require heavy government borrowing.
The growing devastation in Japan may accelerate the short-term negative sentiment in a US equity market already seen as vulnerable, but ongoing weakness is likely to be confined to specific sectors.
The Nikkei stock average is expected to rise on Wednesday, helped by gains in US stocks and a slightly weaker yen, and it may mark fresh eight-month highs as investors continue to add Japanese stocks to their portfolios.
Japanese stocks rallied on Thursday as investors snapped up shares of big exporters after the dollar hit two-week highs against the yen, but markets elsewhere in Asia were more subdued ahead of the influential US non-farm payrolls report.
Japanese stocks led Asian equities higher, climbing to their highest since May, and oil prices were perched near a 27-month high on Tuesday, with investors betting the improving US recovery may be reflected in jobs data later in the week.