Asian shares were mixed on Monday following results from the European Central Bank's stress tests and gains on Wall Street last week.
A key health check of the euro zone's financial system showed that 25 of 130 banks failed the stress tests, which analysts said was better-than-expected. 12 out of those 25 lenders have already raised 15 billion euros this year to repair their finances.
"Overall, the market seems to have found this report quite credible and given the ECB is already engaging in recapitalization activities and other measures, then perhaps investors will remain at ease," said Stan Shamu, market strategist at IG in a note.
The overall market mood is expected to be cautious ahead of a two-day Federal Reserve meeting beginning Tuesday. Speculation is high whether the central bank will announce an end to its bond-buying program and remove the phrase 'considerable period,' a timeline reference for a rate hike, in its statement.
"We expect a $15 billion taper to end quantitative easing and little change in rhetoric. The former is premised on sustained labor market gains. As for a change in language, it may be more effective to clarify at the post-FOMC presser in December," said economists at Mizuho Bank in a report.