Risk assets across Asia rallied on Monday after Cyprus secured a last-minute deal with international lenders for a 10 billion euro ($13 billion) bailout, narrowly avoiding a collapse in the Cypriot banking system.
Under the proposal, the island's second largest bank - Laiki Bank - will be split into a good and bad bank, in what's being called a bail-in. Deposits under 100,000 euros will be transferred to the larger Bank of Cyprus as amounts under that threshold will not be subject to a levy. Those above that will be used to resolve the country's debt.
The Nikkei outperformed to rally 1.7 percent while Seoul's Kospi, Australia's benchmark S&P ASX 200 and Shanghai shares closed off multi-week highs.
Meanwhile, the euro climbed 0.4 percent to push above the 1.30 handle against the greenback while the yen weakened to 94.6 per dollar.