However, optimism on Tokyo's Nikkei was subdued by ongoing concerns over the effects of last month's quake-tsunami and resulting nuclear crisis.

Tokyo added 0.11 percent, or 10.50 points, to 9,718.89 and Hong Kong rose 1.46 percent, or 348.68 points, to 24,150.58 while Sydney ended 0.51 percent, or 25 points, higher at 4,886.8.

Indian shares rose 1.45 percent with the benchmark 30-share Sensex Index closing up 281.34 points to 19,701.73, a near three-month high.

Seoul closed 0.24 percent, or 5.14 points, lower at 2,115.87 on profit-taking after rising for seven straight sessions to hit a record high on Friday.

Shanghai and Taipei were closed for a public holiday.

The US Labor Department said on Friday that 216,000 non-farm jobs were created last month, a fourth straight gain, while unemployment fell to 8.8 percent.

The jobless rate has fallen one percentage point since November and is at its lowest since March 2009.

The news followed a study by payrolls firm ADP showed US companies added 201,000 jobs in March, the third straight month in which more than 200,000 jobs were created.

Traders welcomed the data, which suggest the world's biggest economy has finally turned the corner to recovery after it was hammered by the global financial crisis.

It also adds support to expectations that the Federal Reserve will bring an end to its second huge bond-selling, known as quantitative easing 2, and referred to as QE2, that saw markets flooded with dollars.

"Although the next US monetary policy meeting is a few weeks away, with the end of QE2 in June fast approaching, markets are beginning to more seriously consider the Fed's next move," ANZ Bank said in a note to clients.

"One thing seems certain, and that's that the excess liquidity created by almost infinitely loose monetary policy will not last forever," it said, according to Dow Jones Newswires.

With hopes for the US economy bolstered and the prospect of fewer dollars floating around, the greenback continued its rise against the yen.

In early European trade the dollar firmed to 84.03 yen, from 84.00 yen in New York Friday.

The euro also gained, trading at 119.59 yen from 119.46 and at $1.4232 from $1.4225 with dealers expecting the European Central Bank to soon raise interest rates in the eurozone as it battles to control inflation.

The Australian dollar hit a fresh record against the greenback, fuelling speculation the central bank will keep interest rates on hold for another month. The Aussie reached $1.0417 in early Asian trade, its highest level since being floated in 1983.

Despite easing concerns over the ongoing battle to avert a catastrophe at the Fukushima Daiichi atomic plant in Japan, sentiment continued to weigh on investors.

On Monday the Bank of Japan released a revised Tankan survey showing business confidence for the April-June quarter had plummeted after the March 11 earthquake and tsunami, which killed thousands and crippled the nuclear plant.

Tokyo Electric Power, which operates Fukushima Daiichi, fell 1.56 percent to 442 yen.

The US jobs figures, combined with the conflict in Libya and unrest around the energy-rich Middle East, sent oil higher.

New York's main contract, light sweet crude for delivery in May, rose 29 cents to $108.23 per barrel and Brent North Sea crude advanced 21 cents to $118.91.

Gold closed at $1,433.00-$1,434.00 an ounce in Hong Kong, down from Friday's close of $1,433.50-$1,434.50.

In other markets:

- Singapore closed 0.65 percent, or 20.15 points, higher at 3,140.62.

Singapore Airlines was 0.87 percent lower at Sg$13.64 and Singapore Telecommunications advanced 0.66 percent to Sg$3.05.

- Manila rose 1.93 percent, or 79.89 points, to 4,209.43.

Top-traded Philippine Long Distance Telephone rose 1.87 percent to 2,400 pesos, property firm Megaworld surged 7.14 percent to 2.25 pesos and Metropolitan Bank and Trust jumped 4.90 percent to 68.45 pesos.

-- Wellington closed 0.21 percent, or 7.37 points, up at 3,459.51.

New Zealand Oil & Gas rose 3.3 percent to NZ$0.95, Steel & Tube added 2.3 percent to NZ$2.71 and Fletcher Building was down 0.1 percent at NZ$9.33.

-- Jakarta fell 0.20 percent, or 7.44 points, to 3,700.04.

-- Kuala Lumpur closed flat, edging up 0.10 points to 1,555.48.

Petronas Chemicals climbed 1.6 percent to 7.49 ringgit, property and telecoms giant YTL Corporation rose 1.3 percent to 7.60 and national carrier Malaysian Airlines slid 1.1 percent to 1.83.

-- Bangkok closed up 1.34 percent, or 14.31 points, at 1,078.66.

Banpu gained 14.00 baht to 786.00, while PTT added 11.00 baht to 368.00.

-- Mumbai's Sensex Index closed up 281.34 points to 19,701.73.

Bharat Heavy Electricals Ltd (BHEL) rose 2.84 percent or 59.95 rupees to 2,173.8 while TCS India's largest software exporter rose 2.7 percent or 31.85 rupees to 1,211.5. Mobile phone firm Reliance Communications fell 2.24 percent or 2.5 rupees to 109.15.