Leading Japanese shares hit another seven-year high on Wednesday, adding to the big gains made this week.
The Nikkei closed up 0.4% at 17,197.05 on news that Prime Minister Shinzo Abe might call a snap election and postpone plans to increase the sales tax from the current 8% to 10%.
That marked the highest close since October 2007.
Retailers outperformed, on hopes of a potential delay to the hike in sales tax, which could affect revenues.
Shares in J Front Retailing rose 3%, while Takashimaya climbed 2.9%.
The yen, which had fallen to a seven-year low of 116.11 yen to the dollar on Tuesday, strengthened slightly against the US currency to 115.37 yen.
In Hong Kong, the benchmark Hang Seng Index closed up 0.55% at 23,938.18, while the Shanghai Composite in China finished 1% higher at 2,494.48.
In Australia, the benchmark S&P/ASX 200 index fell 1% to a two-week low of 5,463, despite a survey showing that consumer sentiment rose for a second month in November.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.