Comments from Bank of Japan chief Haruhiko Kuroda saw Japanese markets resume last week's rally and close at its highest level since 2007.
Speaking at a conference in the city of Nagoya late on Monday, Kuroda fueled speculation of further stimulus after saying "we are ready to adjust monetary policy without hesitation if risks materialize."
That saw the yen weaken to a new six-month low at 103.37 per dollar, which lifted large-cap stocks. Among the top winners, SoftBank climbed over 4 percent while Mazda Motor and Panasonic rose 1.7 percent each.
On the economic front, regular salaries slipped for the seventeenth straight month in October, underscoring the difficulties faced by Prime Minister Abe in his battle to increase consumption.
(Read more: Will the Nikkei continue to fly? Charts suggest it will)
Shanghai climbs 0.7%
Mainland shares reversed losses to climb higher thanks to a rally in infrastructure stocks.
Cement maker Anhui Conch ended 3.4 percent higher, construction machinery firm Sany rose nearly 3 percent and China Railway Construction increased by 2.5 percent.
Property shares were higher after a private survey showed new home prices continued to rise. The China Index Academy said prices rose faster in November than the previous month, which sparked fears of further regulations. China Merchants Property added 2.2 percent.