Seoul shares rose almost 4.5 per cent after Moody's Investors Service put the country's foreign currency rating on review for a possible upgrade. Some dealers said the rise was also prompted by an agreement under which financial institutions promised to cooperate in market stabilisation. Tokyo closed up 0.7 per cent despite the rising yen, with investors still bullish after Friday's announcement of a huge bank merger. Sydney rose 1.3 per cent after taking its lead from Tokyo and from Wall Street on Friday.

Kuala Lumpur posted a 1.2 per cent gain in expectations of favourable growth figures due Wednesday and Singapore was up 1.8 per cent on stronger regional markets and Wall Street gains.

Bangkok rose 1.7 per cent on predictions from the International Monetary Fund that Thailand would see growth of some three to four per centthis year and five per cent in 2000. Jakarta closed up 1.5 per cent on Wall Street's gains.

Share prices closed up 0.7 per cent as investors remained bullish following last week's announcement that three big banks plan to merge. Shares in the three banks -- Dai-Ichi Kangyo Bank Ltd, Fuji Bank Ltd and Industrial Bank of Japan Ltd -- soared by nearly 20 per cent as buying orders continued on their planned alliance, brokers said. The key Nikkei 225 index gained 135.44 points to finish at 18,233.55. The Topix of all issues in the first section on the Tokyo Stock Exchange rose 19.78 points to 1,518.72. Trading was heavy with volume estimated at 965 million shares compared with 842 million shares on Friday.

Share prices in Singapore closed 1.8 per cent higher on stronger regional markets and following Wall Street's gains on Friday, dealers said. Kuala Lumpur share prices closed 1.2 per cent higher on positive sentiment before Wednesday's release of second-quarter growth figures, dealers said.