Stock index futures rose 0.6 percent to 4,694.0, a 51.2 point premium to the underlying S&P/ASX 200 index close on Monday. The S&P/ASX200 index rose 0.4 percent on Monday on low volumes.

On Wall Street, buyers emerged in U.S. stocks, enticed by the biggest proposed merger of the year, though crises in Japan, the Middle East and North Africa meant market volatility would continue. The Dow Jones industrial average gained 178.01 points, or 1.50 percent, to 12,036.53.

Copper fell on Monday, retreating from last week's rally due to weakness in U.S. data and Chinese imports and as concerns about Japan's nuclear crisis eclipsed longer-term prospects for metals demand there.

Shares in National Australia Bank may get a boost after the bank said it will get a tax refund of A$142 million after it resolved a dispute with the Australian Taxation Office over the tax treatment of exchangeable capital units.

Shares in BHP Billiton and Rio Tinto will be in focus as top iron ore officials from the firms address an industry conference and their comments will be closely watched for any hints on supply and demand.

New Zealand's benchmark NZX 50 index gained 0.5 percent to 3,365.4 in early trade.