Japanese stocks rose on Monday as global risk asset markets took heart from easing concerns over the health of Deutsche Bank, triggering a relief bounce in financial sector shares.
The Nikkei 225 Index recovered 148.83 points, or 0.9%, to 16,598.67
In Hong Kong, the Hang Seng index raised itself 287.28 points, or 1.2%, to 23,584.43
One of the biggest decliners was Kawasaki Heavy Industries, which fell 11% after it nearly halved its operating profit forecast for the year through March 2017, citing a stronger yen and a decline in profitability from its shipbuilding business.
The upward finish came despite the Bank of Japan's closely watched business sentiment survey, which showed major manufacturers' sentiment remained unchanged from the previous quarter.
In Hong Kong, markets were lifted by gaming plays such as Galaxy Entertainment Group, after the world's biggest casino hub Macau posted a better than expected rise in gambling revenue in September.
Bank of East Asia also helped the rise, with its shares rising 3.5% on talk that private equity firm Permira was near a deal to buy the bank's Tricor unit. It was the stock's biggest daily percentage gain since May 17.
Activity in China's manufacturing sector expanded again in September, an official survey showed on Saturday, which may indicate that recent positive momentum can be sustained.
Australian markets moved up, buoyed by their energy sub-index, which climbed up 1.3% and its heavily-weighted financials sector, which was up 1.2%
The Australian dollar was trading at 0.7652 against the U.S. dollar late Monday afternoon local time, and was mostly rangebound throughout the Asian session.
Tuesday promises the first Reserve Bank of Australia interest rate announcement under new Governor Philip Lowe. No changes are expected.
Traders have been watching for a potential settlement between Deutsche Bank and the U.S. Department of Justice. U.S.-listed shares in the German bank surged 14% on Friday on news its settlement of a mortgage-backed securities mis-selling case could be reduced from $14 billion to $5.4 billion U.S.
In other markets
Markets in Shanghai and Seoul were shuttered for holiday
The Straits Times Index in Singapore eked up 1.37 points, or 0.1%, to 2,870.84
In Taiwan, the Taiex Index regained 67.35 points, or 0.7%, to 9,234.20
In New Zealand, the NZX 50 added 11.4 points, or 0.2%, to 7,372.49
In Australia, the ASX 200 moved higher 42.59 points, or 0.8%, to 5,478.51
