The Bank of Japan (BOJ) expanded monetary stimulus on Monday and pledged to buy unlimited amount of bonds to keep borrowing costs low, thus cancelling its previous target of 80 trillion yen per year.
"Markets are bolstered today by central banks who can support risk sentiment this week by signaling a willingness to expand existing asset-purchase schemes," said Stephen Innes, chief global market strategist at AxiCorp, in a note.
Investors will also be watching out for further stimulus actions from the U.S. Federal Reserve and European Central Bank when they have their monetary policy meetings later this week.
Putting a damper on sentiment, Philippine stocks fell 0.3%, after the central bank warned of the economy's first annual contraction in over two decades due to the coronavirus pandemic.
"We have likened COVID-19 to kryptonite to the once robust economy and we now expect a deep drop in performance," analysts at ING said in a note, forecasting negative growth in the Philippines for the second and third quarter of 2020.
Singapore stocks closed 1.2% higher, its highest close since April 20, boosted by gains in DBS Bank, up 2%, and Singapore Telecommunications, up 3%.
"With Singapore locked down for another month, Singtel (Singapore Telecommunications) should be a beneficiary, both from a defensive investing point of view and a revenue one as internet and mobile usage climb," said Jeffrey Halley, senior market analyst at OANDA.
Thailand closed up 0.7% and Indonesia settled about 0.4% higher.
Indonesian Pharmaceutical company Kalbe Farma ended 6% up, while Thai food conglomerate Charoen Pokphand Foods rose about 1%.
By Nikhil Subba
