The benchmark Nikkei 225 index was up 0.65 percent or 137.81 points at 21,223.75 in early trade, while the broader Topix index rose 0.48 percent or 7.43 points to 1,541.89.

"Japanese shares are seen supported by rallies in US stocks and a cheaper yen," Toshiyuki Kanayama, senior market analyst at Monex, said in a note.

Profit-taking may however weigh on the market later in the trading session, he added.

The dollar fetched 107.07 yen in early Asian trade, down from 106.96 yen in New York late Thursday.

In Tokyo, automakers were higher with Honda gaining 1.28 percent to 2,688 yen, Nissan trading up 1.70 percent at 668.9 yen and Toyota rising 0.52 percent to 7,037 yen.

Some electronics producers were also higher, with Panasonic gaining 1.60 percent to 848.4 yen and Sharp up 1.73 percent at 1,174 yen.

Traders were buoyed by data showing Japan's July household spending edging up 0.8 percent year-on-year, the eighth consecutive monthly increase.

The data underpins the government's view that its economy is on a path of gradual expansion that will eventually lead to hitting its two-percent inflation goal.