Japan's Nikkei 225 breached the 50,000 mark for the first time Monday as investors cheered progress in U.S.-China trade talks and strong momentum from Wall Street. The benchmark index rose over 2%, while the Topix added 1.61%.

Japanese Prime Minister Sanae Takaichi is expected to meet U.S. President Donald Trump t his week during his visit to Japan .

"It is expected that the message she would convey is to significantly expand domestic demand through a high-pressure economy," Crédit Agricole CIB said in a note on Monday.

A strong expansion of the country's domestic demand would "completely lift Japan out of its deflationary structural stagnation" and make progress toward reducing the U.S. trade deficit, resulting in a win-win for both countries, the strategists said.

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