Nikkei average rose as much as 1.77% in early trade after a four-day weekend that marked the opening of Tokyo Olympics, before shedding a part of the gains to trade 1.30% higher at 27,906.28
Wall Street stocks finished little changed as renewed concerns about higher interest rates offset strong manufacturing data and a rally in petroleum-linked shares.
On currency markets, the pound hit a more than three-year high as Britain's vaccine rollout continues and the country announced just one coronavirus-related death Monday, the lowest since the pandemic began.
Hong Kong, Shanghai, Singapore, Seoul and Jakarta were also up, though there were small losses in Manila after a more than five percent surge Thursday.