Japanese shares ended the year on high note, with the benchmark Nikkei 225 index climbing more than 9% in 2015.
The stock market`s rise over the year ranks it among the world`s best-performing major indexes.
For the day, it closed up 0.3% to 19,033.71, taking the strong lead from Wall Street overnight.
The index`s performance over the year was driven by the economic recovery in the US, a weaker yen, along with the Bank of Japan`s asset purchases.
Japanese markets will be closed on Thursday for a public holiday.
Strong US lead
The rest of Asia also headed mostly higher, following US shares where rising oil prices led to a rebound in the market.
The S&P 500 and the Dow Jones indexes both gained over 1% as oil prices rallied overnight to climb by around 3% after Monday`s declines.
Encouraging economic data such as housing and consumer confidence in the US also boosted investor sentiment.
In Australia, the benchmark S&P/ASX 200 index closed up 1% to 5,319.9, hitting a two-month high and leading the gains in the region.
The index also finished higher for the ninth consecutive session - marking its longest winning streak since January.
China data ahead
Chinese shares traded mixed. The Shanghai Composite closed up 0.3% at 3,572.88 points. However, Hong Kong`s Hang Seng index ended down 0.5% at 21,882.15 points.
Investors are looking ahead to manufacturing data due on Friday for clues on the extent of the slowdown in the world`s second largest economy.
South Korea`s Kospi index closed down 0.3% to 1,961.31 on its final day of trading in 2015, but gained 2.4% for the year.
Investors` confidence was dented by data that showed industrial production saw its worst decline in 10 months in November on slumping global demand for exports.
Factory output fell a seasonally adjusted 2.1% from a month earlier, according to Statistics Korea.
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