Asian stocks outside Japan hit a 7-year high Monday as falling oil prices eased concern over corporate profits and shares in display makers surged on hopes flat-screen prices will hit bottom soon.
U.S. oil fell 1.3 percent to $46.56 a barrel, more than $9 off a record high of $55.67 hit in October, after OPEC left output unchanged and Iraq's election passed without disruption to oil exports. The fall lifted some airline stocks.
The dollar edged up on relief that Iraq's first multi-party election in about 50 years had passed without a major hitch, with the focus turning to a Federal Reserve meeting and U.S. economic data that will indicate the health of the world's largest economy.
Japan's Nikkei stock index closed 0.6 percent higher at 11,387.59, lifted by a 2.5 percent gain in Canon Inc. after it forecast record earnings for a fifth straight year.
"After seeing the drop in oil prices, investors are growing optimistic that oil money will now target Japanese equities, especially those companies with bright business prospects," said Terushi Hirotama, head of trading at Ichiyoshi Securities.
Shares fell 1.2 percent in Toshiba Corp. and 1.8 percent in Sanyo Electric ahead of their earnings.
After the market closed, Toshiba reported a 93 percent fall in quarterly operating profit and lowered its full-year outlook.
MSCI's broadest index of Asia Pacific shares outside Japan had risen more than 0.6 percent by 0620 GMT to its highest since September 1997, led by a 1.8 percent jump in its technology component.