Japanese shares climbed on Monday's opening session, driven by solid corporate earnings from Wall Street, even as peace negotiations between the U.S. and Iran broke down, extending the shutdown of the Strait of Hormuz.
The Nikkei rose modestly by 164.5 points, or 0.3%, to start trading day at 59,880.71.
Markets are expected to stay tense as several major central banks, including the Bank of Japan, announce their policy decisions starting Tuesday.
Although investors broadly anticipate no change in interest rates, traders will watch closely for any signals that officials are worried about inflation risks arising from oil supply disruptions linked to the Iran conflict.