Japan's Nikkei average .N225 gained 2.1 per cent to reach a two-month high in a half-day of trading, the first as markets re-opened after a string of New Year's holidays.

A retreat in the yen helped lift exporters like Honda Motor, while a jump in commodity prices boosted shares of energy-related companies and trading houses. Mitsubishi Corp surged more than 9 per cent.

Oil prices climbed 91 cents a barrel to $47.25 as OPEC product cuts took effect and an Iranian military commander reportedly called for an oil boycott over Israel's ground offensive in the Gaza Strip to counter militant rocket attacks.

Russia's move to cut natural gas supplies to the Ukraine also showed signs of affecting Central European countries.

The dollar edged up across the board, mainly getting a boost as the euro stumbled. Traders said the single currency's surge in December was due more to factors such as investors repatriating funds before year-end and was likely overdone.

The euro dropped 0.3 per cent to $1.3860. The dollar index, a gauge of its performance against six major currencies, was up 0.4 per cent at 81.799 .DXY and near a three-week high.

The Australian dollar climbed to its highest in almost three months at about $0.7160.