Stocks across asia-pacific and us futures rose following reports donald trump could be discharged from hospital on monday after the presidents covid-19 diagnosis, as well as hopes for new stimulus measures.
Japans benchmark topix index gained 1.7 per cent and australias s&p/asx 200 climbed 2.5 per cent on monday.
Hong kongs hang seng added 1.5 per cent and south koreas kospi rose 1.2 per cent after traders returned from an extended holiday.
Chinese markets remain closed for a holiday.
Investors were emboldened by potential positive news on mr trumps health and the prospect of new fiscal stimulus measures in washington. the presidents medical team said he could be discharged from the walter reed military hospital as early as monday despite receiving treatment reserved for severe covid-19 cases.
Mr trump and his wife melania were diagnosed with coronavirus late last week, prompting a sell-off in global markets.
Meanwhile, democratic speaker of the house nancy pelosi told the cbs television network on sunday that were making progress on a coronavirus support package to restore some of the expanded us unemployment benefits that were cut off at the end of july.
While democrats in the house on thursday passed a $2.2tn stimulus package, republicans and the white house have signalled resistance to the scale of the bill. mr trump on sunday issued a call via twitter for negotiators to work together and complete a stimulus deal.
Stock futures for wall streets s&p 500 rose 0.7 per cent while those for londons ftse 100 gained 0.9 per cent. us futures trading is often thin during asian trading hours, potentially increasing volatility, but gains of close to 1 per cent are rare so far away from the opening bell in new york.
The bigger catalyst for us today is the potential that the [stimulus] deal goes through, said andy maynard, a trader at china renaissance. that is the thing thats boosting peoples ability to put money to work.
He added that volumes remained low with chinas stock exchanges still shut for much of the week.
The long-awaited stimulus package that has been stalled in congress may finally get some feet and could pass in the coming weeks, said david chao, a global markets strategist at invesco. he said data published last week that showed employment growth slowed in september could expedite the bill.
In currencies, chinas offshore-traded renminbi gained 0.1 per cent to rmb6.7476 per dollar.
Mr trumps diagnosis is likely to disrupt his re-election campaign agenda and dampen his chances of winning the election, said ken cheung, chief asian currency strategist at mizuho bank.
That could be positive for the chinese currency if victory for joe biden in november results in a cooling off in us-china tensions, mr cheung added.
Oil prices also rose with international benchmark brent crude up 2.1 per cent to $40.09 a barrel. us marker west texas intermediate rose 2.4 per cent to $37.94 a barrel.
Additional reporting by daniel shane in hong kong