Japan's Nikkei closed at its highest in more than a month on Monday, buoyed by machinery and technology stocks, as Shanghai's stimulus measures and decision to ease COVID-19 curbs tempered fears of a sharp slowdown in the world's second-largest economy.

The Nikkei share average gained 2.19% to 27,369.43, its highest close since April 21. The broader Topix ended 1.86% higher at 1,922.44.

Helping to lift risk appetite was news that Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, easing a city-wide lockdown that began two months ago.

Wall Street closed sharply higher on Friday as signs of stubborn inflation and consumer resiliency sent investors into the long holiday weekend with growing optimism that the U.S. Federal Reserve will be able to tighten monetary policy without tipping the economy into recession.

"The Nikkei gained after Wall Street's gains, which were supported by easing concerns over excessive U.S. inflation," said Maki Sawada, strategist at Nomura Securities.

News that Shanghai authorities will ease a two-month long city-wide lockdown also boosted Japanese stocks, she said.

Shanghai's decision also includes various measures to boost the economy, such as reducing some passenger car purchase taxes to spur auto consumption.

Japanese machinery makers rose, with Daikin Industries jumping 6.53% and Kubota climbing 3.58%.

Audio and camera maker Sony Group advanced 4.99% and robot maker Fanuc gained 4.66%.

Shares of shipping firms fell 2.86% and were the worst performers among the Tokyo Stock exchange's 33 industry sub-indexes.

Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha were the worst performers in the Nikkei, losing 3.36% and 3.13%, respectively.

(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)