Asian resources stocks rose, led by BHP Billiton, after oil prices climbed to a three-month high, and Deutsche Bank AG increased its rating on Cnooc Ltd (中國海洋石油).
"Resources stocks make up a significant part of the market," said Hans Kunnen, who helps manage US$70 billion at Colonial First State Investment Management Australia Ltd in Sydney.
"In the absence of overarching economic or earnings news, they tend to rise in line with commodities prices, like oil," he said.
Tokyo Electric Power Co led Japanese utilities lower after the government tightened rules on reporting nuclear accidents.
Posco fell after Arcelor Mittal, the world's biggest steelmaker, denied speculation it plans to make an offer for the company.
The Morgan Stanley Capital International Asia-Pacific Index was little changed at 145.99 as of 7:51pm in Tokyo.
A measure of energy stocks posted the biggest gain among 10 industry groups and was set to close at the highest since Feb. 26.
China's Shanghai and Shenzhen 300 Index climbed 1.8 percent, the most in the region, to a new high. China Minsheng Banking Corp (
BHP, the world's biggest mining company that gets a fifth of its sales from oil, gained 2.9 percent to A$30.04 (US$24).
Woodside Petroleum Ltd, Australia's second-biggest oil producer, rose 3.4 percent to A$38.23.
PetroChina Co (中國石油天然氣), China's largest oil explorer, rose 1.8 percent to HK$8.94 (US$1.14) in Hong Kong.
Crude oil rose 1 percent to US$62.28 in New York on Friday, the highest close for the front-month oil contract since Dec. 22, on concern Iran's capture of 15 British naval personnel will heighten tension in the Middle East.
Oil was recently at US$62.68 in after-hours trading.
"From a long-term perspective, we still see a lot of demand coming through from China and India," said Grace Tam, a Hong Kong-based associate of investment services at JF Asset Management Ltd, which has US$88 billion of assets in Asia.
"That's why we shouldn't take all the oil companies out of our portfolios," Tam said.
Cnooc, China's largest offshore oil explorer, gained 0.9 percent to HK$6.53 in Hong Kong. Deutsche Bank raised its recommendation on the stock to "buy" from |"hold" on expectation of higher oil prices, production volumes and acquisitions.
MSCI's Asian benchmark rallied 3.3 percent last week, the first weekly gain since a rout that began last month wiped US$3.3 trillion from the value of global markets.
Tokyo Electric, Japan's No. 1 power producer, slid 2.1 percent to ?4,240 (US$35.85). Kansai Electric Power Co, the second largest, fell 2.9 percent to ?3,710. Chubu Electric Power Co declined 3.4 percent to ?4,320.
Chubu Electric, Tokyo Electric and Tohoku Electric Power Co admitted this month they failed to report accidents during routine shutdowns over the past three decades.
Tokyo Electric said last Thursday that an accident that may have occurred at its Fukushima Daiichi plant in 1978 could have caused a nuclear chain reaction.
Hokuriku Electric Power Co was ordered to halt operations at its Shika No. 1 reactor on March 15 after the company said it covered up an accident eight years ago.
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