A 2 percent rally in Japanese stocks led gains on Monday with exporters lifted by a weak yen, while Australian shares charged to a fresh four-and-a-half year high on strong corporate earnings.
The Nikkei's recent jump to 33-month highs solidifies its place as Asia's best performing stock market with a 26 percent rise over the past three months, compared to Shanghai's 17 percent and Australia's 16 percent increase.
However, some investors are warning the Japanese market is getting too hot. "The Nikkei is still at a historic P/E multiple of 30 times forward. Some people argue it's going to be 14 times on a price-to-book basis... I'm a skeptic and I don't see a substantive change in the corporate behavior of Japan," said Eddie Tam, CIO of Central Asset Investments.