An additional 20 million Takata airbags would be recalled by car maker Honda, Nikkei newspaper reported on May 8.
Honda shares rose 1.6% in Tokyo, while Takata shares closed 0.3% down.
Meanwhile Nikkei 225 index rose by 0.7% to close at 16,216.03, following last week’s gains in the US.
In China, shares fell in response to the disappointing trade data released on May 8, which showed that both exports and imports fell more than expected in April.
The mainland benchmark Shanghai Composite fell 2.8% to close at 2,832.11 points while Hong Kong’s Hang Seng fared better. That market index closed up 0.2% at 20,156.81.
In South Korea, the Kospi index fell 0.5% to close at a one-month low, at 1,967.81 points.
Australia’s benchmark ASX/200 rose 0.5%, closing at 5,320.70.
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