Asian stocks rose broadly on Monday after US employers unexpectedly cut jobs in July and hiring figures for the prior two months were also revised downward, helping ease the risk of an immediate US interest-rate hike.

Regional gains, however, remained limited after Tehran warned that it will not reopen the Strait of Hormuz unless the United States meets a series of conditions, denting hopes for a return to stability in global energy markets.

The US dollar edged up from a two-month low in Asian trade ahead of key US inflation readings due later in the week.

Brent crude futures were little changed near $84 a barrel after rising more than 5% over the previous three sessions.

Gold extended gains to trade at $4,353 an ounce after surging over 7% to reach its highest level in seven weeks on Friday.

China's Shanghai Composite index rose 0.67% to 3,966.59 as signs of persistent deflationary pressures in the world's second-largest economy fuelled speculation that Beijing could roll out more stimulus to prop up domestic demand. Hong Kong's Hang Seng index surged 1.05% to 25,937.49.

According to official data released on Sunday, China's consumer price index rose 0.5% year-on-year in July, below forecasts for 0.8% growth following June's 1% gain. Producer price growth slowed to 3.5% from 4.1% in the previous month.

Japanese markets rose sharply while the yen steadied after the "Summary of Opinions" from the Bank of Japan's July monetary policy meeting revealed a divided board regarding the pace of future interest rate hikes.


The Nikkei average jumped 2.08% to 66,970.22, reaching its highest level in nearly four weeks. The broader Topix index gained 0.63% to close at 4,100.61.

Seoul stocks rose notably to snap a two-day losing streak on fading Fed rate hike bets. The Kospi index surged 0.65% to 6,299.66.

Among the prominent gainers, LG Energy Solution climbed 2.1% and Hyundai Motor rallied 3.2%.

Australian markets ended lower, with banks falling sharply ahead of the Reserve Bank of Australia's policy decision, due on Tuesday.

The benchmark S&P/ASX 200 dropped 0.33% to 9,232.60 while the broader All Ordinaries index settled 0.22% lower at 9,424.10.