Japan's Nikkei index rose at the end of Monday's session, as investors rushed to buy declining stocks amid an improvement in risk appetite after markets received support from a recovery on Wall Street.
The Nikkei index closed up 0.91 percent at 39,347.04. The broader Topix index rose 0.95 percent to 2,728.32.
The Nikkei hit an all-time high of 41,087.75 on March 22, but is struggling to stay above 40,000 after suffering two straight weekly losses.
Last week, the index witnessed its worst weekly performance since December 2022, affected by the decline in US stocks and the start of profit-taking operations. Concerns about Japanese authorities intervening to support the currency also affected the market.
However, the Nikkei is up 16.5 percent year-to-date, and analysts do not seem to see the recent declines as signs of a deeper decline.
The dollar was last trading at around 151.79 yen.
Local traders tracked the upbeat performance on Wall Street on Friday after US jobs growth data beat expectations.
Concerns about the crisis in the Middle East have eased, with no further deterioration in the situation in Gaza over the weekend.
Most sectors of the Nikkei index rose on Monday, with 188 of the 225 Nikkei stocks advancing against 35 declining, although the rally lost some momentum in the afternoon session.
Fast Retailing, owner of clothing brand Uniqlo, rose 1.6 percent, adding 68 points to the Nikkei's gains of nearly 355 points.
Several index heavyweights rose, with chipmaking equipment giant Tokyo Electron rising 1.1 percent and AI startup-focused SoftBank Group Corp gaining 0.7 percent.
Toyota Motor jumped 2.2 percent, while automakers Suzuki Motor and Honda Motor gained 3.5 percent and 1.5 percent, respectively.
Chip-related firm Socionnext posted the biggest percentage gain, adding 7.19 percent, followed by Tokyo Electric Power Holdings Co., which gained 3.93 percent.
