The Nikkei 225 rose 281 points, or 0.7%, to 38,976 in early trade on Monday, bouncing back from the previous session's losses amid a significant rise in U.S. futures as weaker U.S. inflation data revived hopes for potential policy easing next year.

The broader Topix index rose 15 points, or about 0.6%, reversing losses in the previous session, buoyed by relief that Washington managed to avoid a government shutdown.

At home, the Bank of Japan last week kept its key short-term interest rate at around 0.25%, in line with market expectations, as the central bank needed more time to assess certain risks, particularly U.S. economic policy under Donald Trump and the outlook for wages next year.

Source: Trading Economics