Japan's Nikkei index broke above 50,000 points for the first time on Monday, supported by optimism about progress in US-China trade talks and strong momentum from Wall Street. The benchmark index rose more than 2%, while the Topix index rose 1.61%.
Japanese Prime Minister Sanae Takaichi is scheduled to meet with US President Donald Trump this week during his visit to Japan.
The expected message from Takaishi is to significantly expand domestic demand through a high-pressure economy, Credit Agricole CIB said in a note on Monday.
The bank's analysts added that a strong expansion in domestic demand would fully lift Japan out of its structural deflationary recession and contribute to narrowing the US trade deficit, representing a win-win for both parties.
Across Asia, South Korea's Kospi jumped 2.1%, surpassing the 4,000-point mark for the first time after hitting a record high on Friday, while the small-cap Kosdaq index rose 1.45%. Hong Kong's Hang Seng Index rose 1.15%, and mainland China's CSI 300 Index rose 0.83%.
Shares of Korean entertainment agency Hype jumped nearly 10% after a report that BTS is planning a 65-city world tour, half of which will be in North America.
In Australia, the ASX/S&P 200 index rose 0.54% in early trading.
Regional gains were fueled by reports that top US and Chinese trade negotiators have reached a framework that addresses several contentious issues, paving the way for President Donald Trump and his Chinese counterpart, Xi Jinping, to ratify the terms of the agreement.
US Treasury Secretary Scott Besant said in an interview with CBS News on Sunday that Trump's proposed 100% tariffs on Chinese imports are effectively off the table. He added that China is expected to make significant purchases of soybeans and postpone the imposition of sweeping restrictions on rare earth exports, while the United States will maintain current export controls on China.
Last Friday, the three major US indices closed at record highs after moderate inflation data reinforced investor optimism that the Federal Reserve would continue its interest rate cut path, supporting the US economy and justifying high stock valuations.
The Dow Jones Industrial Average rose 472.51 points, or 1.01%, to close at 47,207.12, marking its first ever close above 47,000. The Standard & Poor's 500 index added 0.79% to 6,791.69, while the Nasdaq Composite index rose 1.15% to 23,204.87.
Investors are currently monitoring the Federal Reserve's expected decision to cut interest rates, along with a series of earnings reports from major technology companies.
