for setting the ignition timing,i would get timing checker at HVC Cycles.
http://www.hvccycle.net/ignition-timing-tester-buzzbox/i use a similar unit on all my bikes and it is called a Okuda Timing checker 2030.
you hook up one lead to the black or black wire with a white stripe coming off of the ignition and the other lead to ground on the engine or frame itself.
here is my okuda in action with a dial indicator being used but if your MT125 is like my MT250,there is a plate on the magneto cover with a arrow in it and you align it with the mark on the flywheel so no dial indicator is needed on a MT250 and possibly the 125 as well.

if you have the eyes of a eagle,you want the points to crack open when the marks align.i use the testor as my eyes are not the greatest.
the timing on my example reads 2.7 mm BTDC.
also if your crankshaft rotates Counter Clockwise,you want to turn it clockwise to set the timing.
the Okuda beeps when the points are open and it goes out when the points close if memory serves.