The yen fell to a 7-1/2-month low against the dollar Thursday, lifting Japan's Nikkei share average to a six-month high, on expectations of aggressive policy action under an expected new government.
The Japanese currency fell to 82.535 yen to the dollar and has fallen around 4 percent in the last 10 days. The yen is expected to continue to be under pressure ahead of the Dec. 6 Japanese election.
Shinzo Abe, leader of the opposition Liberal Democratic Party, who is expected to win, has called for stronger measures from the Bank of Japan bank to pull the export-reliant economy out of deflation.
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"The dollar/yen continues its break higher and the Korean won is the star in this move. Post Japanese elections, the reality of trying to pass a new BOJ law and the risk for the JGB market are likely to tamper the hype, until then we can still move higher," Societe Generale analysts said in a note reported by Reuters.
"Hedge funds and the likes need this year end run to round up what has been a difficult year."
Tokyo's Nikkei average rallied 1.3 percent to its highest level since May 2, while MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent and Australian shares advanced 1 percent.
The won scaled a 16-month high against the Japanese currency and South Korean shares gained 0.5 percent.