The Nikkei 225 index at the Tokyo Stock Exchange was up 36.26 points at 8,783.13 at the start.

New York shares scored modest gains Wednesday after the Institute for Supply Management's services industry purchasing managers index showed the crucial sector picking up pace.

Payrolls company ADP's private sector hiring report was better than expected, though at 162,000 jobs in September was still down by 14 percent from August.

"The positives have lined up for Japan shares to rise -- especially the weaker yen," Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, told Dow Jones Newswires.

The euro bought $1.2917 and 101.33 yen in early Asian trade, compared with $1.2903 and 101.31 yen in New York late Wednesday.

The dollar was at 78.43 yen against 78.51 yen in US trade.

The blue-chip Dow Jones Industrial Average finished up 12.25 points (0.09 percent) at 13,494.61 even though Hewlett Packard shares plunged 13.0 percent on concerns about the company's turnaround strategy.