Tokyo's Nikkei 225 briefly broke 30,000 for the first time in five months on growing expectations for a fresh injection of stimulus after Japan's prime minister said he would step aside, paving the way for a new big-spending successor
The broad gains put the region on course to end a strong week on a positive note as concerns about the fast-spreading Delta variant, which weighed on confidence for much of August, gave way to optimism over the recovery outlook
The figures gave investors reason to think ahead of Friday's government employment report, which some analysts had forecast to show a gain of as much as a million jobs
He said a symposium of central bankers and financial heads at Jackson Hole, Wyoming, next month would be closely followed for any clues about the Fed's next move
Recent remarks from Fed policymakers have suggested that a discussion on tapering bond-buying was underway, with the upcoming policy meeting in mid-June possibly providing more clarity.
"Markets continue to view this progress favorably, with long-term interest rates remaining remarkably calm and the stock market, so far, avoiding any sharp correction."
But Asia struggled to follow suit with most markets swinging in and out of positive territory. Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila were all in the red but Singapore and Jakarta edged up.