Asia stocks gain; Nikkei rallies 1.9% on weaker yen, G-20

Investing.com - Asian stock markets were higher during late Asian trade on Monday, with markets in Japan rallying to end close to a five-year high after finance ministers from the Group of 20 nations indicated that they support Japan’s efforts to spur growth through aggressive monetary easing policies.

During late Asian trade, Hong Kong's Hang Seng Index rose 0.1%, Australia’s ASX/200 Index ended up 0.7%, while Japan’s Nikkei 225 Index rallied 1.9%.

In Tokyo, the Nikkei rallied sharply to hit a 57-month high as the yen came under heavy selling pressure after a statement from the G-20 eased concerns that Japan would face criticism after it announced earlier this month that it plans to double the size of its asset purchase program over the next two years.

"Japan's recent policy actions are intended to stop deflation and support domestic demand," the G-20 said.

BoJ Governor Haruhiko Kuroda welcomed the G-20 statement, saying, "Now that we have obtained the support of the international community, we will be able to implement our program with confidence".

The dollar re-approached four-year highs against the yen, with USD/JPY hitting session highs of 99.89, within sight of the key JPY100-level. A weaker yen boosts the value of overseas income at Japanese companies when repatriated.

Automakers Mazda and Mitsubishi jumped 6% and 4.9% respectively, while Sharp and Canon tacked on 2.3% and 1.8%.

Japanese megabanks were also higher, with stocks of the nation’s largest lender Mitsubishi UFJ Financial Group climbing 1.6%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group rose 1.2% and 1.9% respectively.

Meanwhile, in Australia, the benchmark ASX/200 Index inched up on the back of strong gains in miners, as commodity prices stabilized from last week’s sharp losses.

Gold miner Newcrest Mining rose 2.3%, while BHP Billiton and Rio Tinto advanced 0.9% and 1.2% apiece.

On the downside, OZ Minerals saw shares tumble 10.2% after cutting its forecast for copper production.

Elsewhere, in Hong Kong, the Hang Seng swung between modest gains and losses, with insurance providers coming under pressure, following the deadly earthquake that struck the Sichuan province on Sunday.

China Life Insurance Group saw shares drop 2.5%, Ping An Insurance Group declined 2%, while China Pacific Insurance Group slumped 2.9%.  

Looking ahead, European stock market futures pointed to a higher open. The EURO STOXX 50 futures pointed to a gain of 0.7% at the open, France’s CAC 40 futures added 0.6%, London’s FTSE 100 futures rose 0.4%, while Germany's DAX futures pointed to an increase of 0.6% at the open.  

The euro zone was to release a report on consumer confidence later Monday, while the U.S. was to release private sector data on existing home sales.