The Nikkei 225 index was up 0.43 percent or 93.18 points at 21,714.06, while the broader Topix index was up 0.35 percent or 5.46 points at 1,574.28.

News reports have said that US Trade Representative Robert Lighthizer will lead a delegation to China next week to resume negotiations, also sending US shares higher.

"Even though there are potentially market-upsetting factors such as the IMF's downward revision of the global economic outlook... and the victory of hawkish pro-Brexit Boris Johnson in the UK Tory leadership vote, favourable factors will likely overwhelm" negative ones, Okasan Online Securities said in a note.

The dollar fetched 108.21 yen in early Asian trade, against 108.22 yen in New York.

In Tokyo, Nissan was up 1.00 percent at 782 yen after news reports said it planned to cut around 10,000 jobs. The reports came ahead of its earnings announcement on Thursday.

Its rivals were also higher, with Toyota trading up 1.07 percent at 7,176 yen and Honda up 0.94 percent at 2,871.

Sony was up 2.08 percent at 5,974 yen, chip testing equipment maker Advantest rallied 3.45 percent to 3,445 yen and chip-making equipment manufacturer Tokyo Electron was up 1.93 percent at 18,140 yen.

On Wall Street, the Dow ended up 0.7 percent at 27,349.19.