Traders pushed Asian stocks higher as they positioned for a raft of central bank meetings this week.
Chinese equities led the region amid easing concern over US-China political tensions.
The MSCI Asia Pacific Index rose 0.8 per cent to 145.46 as of 5:20pm in Hong Kong, its biggest gain in almost a month. Crude oil extended its decline below $50 per barrel.
Data last week showed US employers added jobs at an above-average pace and traders are now pricing in greater odds for more interest-rate hikes this year.
The Federal Reserve's rate decision is due on Wednesday in Washington during a week when policy makers in Japan and the UK also meet.
The yuan strengthened on Monday after Steve Schwarzman, one of President Donald Trump's top economic advisers, said on CNN that Trump will probably temper his criticisms of China, including his campaign claim that the country manipulates its currency.
Analysts at Goldman Sachs recommended buying Chinese stocks, saying earnings will rise amid reflation.
MSCI China's earnings growth estimate rises to 13 per cent from 10 per cent on increasing nominal growth, policy stability before National People's Congress and favourable flows, according to a note from Goldman Sachs on Monday.
