Japanese stocks rose on Monday as fears of further escalation in the Iran conflict eased. The Nikkei Stock Average climbed 0.4% to 64859.12, led by gains in airline and auto shares. Japan Airlines surged 4.2% while carmaker Subaru advanced 2.8%. The dollar weakened to 163.56 yen from 163.78 yen at Friday's close.

Investors monitored crude oil prices after President Trump postponed a major escalation of the U.S. military campaign against Iran. The market's advance reflected relief that tensions in the Middle East may not spiral further, though traders remained cautious about potential flare-ups. Airline stocks benefited from the prospect of stable fuel costs, while automakers gained on improved risk sentiment.

The yen's modest strength against the dollar also supported export-oriented shares. Market participants will continue watching geopolitical developments and oil price movements for further direction in the coming sessions.