Tokyo's main Nikkei 225 index closed 1.1 percent higher after the bank's decision caused the yen to fall against the dollar, boosting Japanese exporters.

Several markets were shut in Asia for holidays on Thursday, including in Hong Kong and mainland China.

Among open indexes, Sydney edged up 0.2 percent while New Zealand jumped two percent.

The Bank of Japan warned that trade tariffs are fuelling global economic uncertainty and revised down its growth forecasts for the world's fourth-largest economy.

US President Donald Trump has imposed hefty levies on trading partners and imports including steel and automobiles to rectify what he says are unfair trade imbalances.

"Heightened uncertainties regarding policies including tariffs are likely to have a large impact on business and household sentiment around the world and on the global financial and capital markets," the BoJ said.

Its policy decision sent the yen lower, with one dollar buying 144.41 yen compared to 143.13 yen Thursday morning.

"On the back of the US rally on Wednesday and strong earnings results from Microsoft and other US companies, major AI-related stocks including Advantest were bought across the board," IwaiCosmo Securities said.

"In the afternoon, the yen weakened... following the downward revision of the Bank of Japan's Outlook Report and other factors, which led to a broadening of the rally."

Markets are looking ahead to Friday's US jobs data for April, which will be the first tangible reading of economic conditions after the Trump administration's sweeping April 2 tariffs -- many of which have been suspended.

Wall Street stocks opened sharply lower on Wednesday after US government data showed the economy shrank by an annual rate of 0.3 percent in the first quarter, amplifying recession worries.

But they moved gradually higher through the day, rising after mid-morning data showed personal spending in March topped estimates.

As more companies pull back from earnings forecasts in the face of the uncertainty regarding US tariffs, tech giants Meta and Microsoft reported quarterly profits that were above expectations.

Shares in Meta -- which owns Facebook, Instagram and WhatsApp -- rose more than four percent in after-market trades.

"Strong earnings reports from US IT companies are expected to drive gains, led by the electronics sector," strategist Takashi Ito of Nomura Securities told Bloomberg.

- Key figures at around 0800 GMT -

Tokyo - Nikkei 225: UP 1.1 percent at 36,241.70 (close)

Hong Kong - Hang Seng Index: closed for holiday

Shanghai - Composite: closed for holiday

Euro/dollar: DOWN at $1.1323 from $1.1342 on Wednesday

Pound/dollar: DOWN at $1.3314 from $1.3328

Dollar/yen: UP at 144.32 yen from 143.18 yen

Euro/pound: UP at at 85.01 pence from 84.97 pence

West Texas Intermediate: DOWN 1.2 percent at $57.50 per barrel

Brent North Sea Crude: DOWN 1.02 percent at $60.44 per barrel

New York - Dow: UP 0.4 percent at 40,669.36 (close)

London - FTSE 100: UP 0.4 percent at 8,494.85 (close)

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