Asian stocks climbed, trading at the highest level in a year, after US shares regained records and a rally in crude futures bolstered commodity producers.

The MSCI Asia Pacific Index rose 0.1 per cent to 139.98 as of 9.05am in Tokyo. Japan's Topix index increased 0.1 per cent as the yen fluctuated against the dollar.

Asian stocks have climbed 24 per cent from their February low as lacklustre data on the world's biggest economies fuels speculation central banks will continue to support them with stimulus and loose monetary policy. The odds the Federal Reserve will raise rates this year remains below 50 per cent.

“Equities continue to be a very compelling buy given the low and even negative bond yields in some countries,” Angus Nicholson, a markets analyst at IG in Melbourne, said. “The resurgence of commodities amid prospects of further stimulus from China, Japan and EU is also beneficial for equities. While US equity valuations look stretched, the valuations in emerging market Asia aren’t crazy.”

The S&P 500 Index climbed 0.3 per cent on Monday, regaining an all-time high and pushing valuations to 18.6 times estimated earnings. That compares with 14.3 times for the MSCI Asia Pacific Index, data compiled by Bloomberg showed.

South Korea’s Kospi index advanced 0.5 per cent as the market resumed trading following Monday’s holiday. Australia’s S&P/ASX 200 Index added 0.1 per cent. New Zealand’s S&P/NZX 50 Index declined 0.2 per cent.

Futures on the FTSE China A50 Index added 0.1 per cent in most recent trading, while those on the Hang Seng Index rose 0.4 per cent. The Shanghai Composite Index advanced 2.4 per cent on Monday to close at the highest level since January 8th on optimism details of a trading link between Shenzhen and Hong Kong will soon be announced.

Futures on the S&P 500 Index were little changed.

All three American equity benchmarks climbed Monday amid deal activity and as crude oil extended gains to boost commodity producers.

Oil traded above $45 amid speculation that crude producers will revive talks on stabilizing prices. West Texas Intermediate crude futures were down 0.2 per cent in early Asian trading after climbing 2.8 per cent on Monday. Prices advanced last week as Saudi Arabia signalled it is prepared to discuss stabilising markets at informal Opec discussions next month. – (Bloomberg)