Oil in spotlight as Trump's Iran warning rattles sleepy markets
West Texas Intermediate was up more than one percent, nearing $64 per barrel, while Brent eased slightly to just under $69.
Trump warned Iran of the "consequences of not making a deal" ahead of talks between Washington and Tehran in Geneva.
The US president has repeatedly threatened military action against the Islamic republic -- first over its deadly crackdown on anti-government protests, and then more recently over the country's nuclear programme.
The warning rippled through markets in an otherwise quiet start to the week, as Shanghai, Hong Kong, Taipei, Seoul and Singapore remained closed for the extended Lunar New Year holiday.
US markets were set to reopen Tuesday after Monday's break for Presidents' Day.
Gold slid below $5,000 per ounce, while silver dropped four percent.
In Tokyo, the Nikkei was down 0.8 percent after the world's fourth-biggest economy reported weak growth in the fourth quarter on Monday.
"With the US market closed, the Japanese market is expected to start today with little movement due to a lack of material," brokerage house Monex said in note.
"In the foreign exchange market, the dollar/yen exchange rate was trading in the mid-153 yen range, a weaker yen than the previous day, which is likely to support export-related stocks."
Investors will also turn to Japanese Finance Minister Satsuki Katayama's appearance at the Digital Space Conference, Monex added, although "this is likely to have a limited impact on the stock market, and a sense of stalemate is expected throughout the day".
Sydney jumped 0.5 percent after Australian giant BHP, the world's largest copper producer, reported a hike in half-year net profit, boosted by demand for copper to meet the global need for electrical power.
Bangkok shrugged off limp economic growth reported on Monday to rise 0.5 percent, riding a post-election high after the conservative Bhumjaithai Party's stunning victory in February 8 polls.
Mumbai, Jakarta and Manila were also in the green, while Wellington slid 0.5 percent and Kuala Lumpur was little changed.
Traders will also be keeping an eye on artificial intelligence this week, as tech CEOs and global leaders rub shoulders at the AI Impact Summit in New Delhi.
Touted as the biggest edition yet, the five-day summit aims to declare a "shared roadmap for global AI governance and collaboration".
US Fed Governor Michael Barr and San Francisco Fed President Mary Daly are also scheduled to speak on AI on Tuesday, Bloomberg News reported.
While frenzied demand for generative AI has turbocharged profits for many tech companies, anxiety is growing over the risks that it poses to society and the environment.
Key figures at around 0230 GMT
Tokyo - Nikkei 225: DOWN 0.8 percent at 56,328.98
Hong Kong - Hang Seng Index: closed for holiday
Shanghai - Composite: closed for holiday
Dollar/yen: UP at 153.18 yen from 153.48 yen on Monday
Euro/dollar: DOWN at $1.1846 from $1.1854
Pound/dollar: DOWN at $1.3619 from $1.3630
Euro/pound: FLAT at 86.98 pence
West Texas Intermediate: UP 1.2 percent at $63.66 per barrel
Brent North Sea Crude: DOWN 0.3 percent at $68.48 per barrel
New York - Dow: market closed for holiday
London - FTSE 100: UP 0.3 percent at 10,473.69 points (close)