The Nikkei 225 Index surged 0.9% to around 37,500, while the broader Topix Index gained 1.1% to 2,711 on Monday, recovering some of last week's losses, supported by Wall Street's strong finish on Friday. However, investors remained cautious ahead of the March 4 deadline for US President Donald Trump's proposed 25% tariffs on Mexico and Canada, along with an additional 10% duty on Chinese goods. Geopolitical concerns also remained, as Trump and Ukrainian President Volodymyr Zelensky failed to reach an agreement on Friday that could potentially end the war in Ukraine.

Domestically, Japan's manufacturing PMI for February was revised slightly higher, but still indicated contraction for the sixth consecutive month. Among the top performers were Disco (up 1.5%), Mitsubishi Heavy Industries (up 4%), Mitsubishi UFJ (up 1.2%), IHI Corp (up 3.3%), and Toyota Motor (up 3.2%).

Source: Trading Economics