Asian stocks rose this morning with China's market surging to an all-time high and South Korea also hitting a record, as a rally in metals prices lifted miners and a stronger dollar boosted shares in Japanese exporters.
The US currency hovered near a three-month high against the yen and a six-week peak to the euro as traders bet weak US housing data late last week was not enough to warrant a cut in US interest rates later in the year.
Crude oil prices eased about a third of a percent after a Nigerian oil union strike was suspended at the weekend, but remained above $70 a barrel on worries about gasoline supplies ahead of the US summer holiday season.
European shares were expected to open firmer, but activity was seen limited with several markets, including Britain and Germany, and the United States, closed for public holidays.
Tokyo's Nikkei rose 0.6 per cent, while MSCI's index of shares elsewhere in the Asia Pacific region was up 0.4 per cent.
"Last week's trend of the weaker yen is continuing, so that is a plus for exporters," said Katsuhiko Kodama, senior strategist at Toyo Securities.
A weaker yen boosts companies such as electronics components maker Kyocera, which rose 1.1 per cent, and Honda Motor Co Ltd, which firmed 0.7 per cent, as it inflates the value of overseas earnings.
Sumitomo Metal Mining Co Ltd. rose 3.2 per cent on higher metals prices.
The dollar bought around 121.62 yen within sight of a four-year high of 122.20 touched in January. The euro was around $1.3455.