"The weak yen and buoyant regional PMIs/ISM were reasons for optimism about Japanese exporters," Vishnu Varathan, head of economics and strategy of Asia and Oceania Treasury Department at Mizuho Bank, told CNBC.
It's not just positive manufacturing sector readings in the U.S., China and Japan, but also in the U.K.
On Tuesday, the Markit/CIPS UK Manufacturing PMI rose to 56.1, its strongest reading since June 2014, and a jump from 53.6 in November.
Major Japanese exporters were all sharply higher, particularly automakers, because a weaker yen would increase the value of profits earned overseas when it is repatriated and make Japanese exports cheaper for foreign buyers.
Toyota was up 3.18 percent at 7,097 yen, while Honda advanced 4.57 percent to 3,571 yen. Takata rallied 17.5 percent or 150 yen at 1,007 yen per share, to hit its daily price limit. The airbag maker had gained 65 percent or 400 yen per share since last Wednesday, when news broke that the company could settle U.S. criminal charges by next month related to faulty equipment.
Electronics giant Sharp was up 8.52 percent to 293 yen per share, after jumping as high as 10.3 percent to two-year highs, after news that it plans to co-build a 61 billion yuan ($8.8 billion) factory in China with Hon Hai Precision Industry to produce liquid-crystal displays. Shares of Hon Hai slipped 0.12 percent to 84.20 Taiwanese dollars.
Earlier, Toshiba plunged as low as 6.9 percent to 263.5 yen each share at the open after Asahi Shimbun reported a Japanese security watchdog suspects the company padded profits by 40 billion yen in the past three years, Reuters reported.
Shares of the Japanese conglomerate recovered from earlier heavy losses to trade down 2.01 percent at 277.4 yen in an extremely volatile session. The stock has fallen nearly 37 percent or 165.7 yen each since last Dec. 26.
Last week, Toshiba said it may have to book several billion dollars in one-off charges related to a U.S. nuclear power plant construction company acquisition.