Asia stocks mostly higher; Nikkei ends up 1.5% on weak yen

Investing.com - Asian stock markets were mostly higher on Monday, as sentiment was lifted after Western powers reached a historic deal with Iran over its nuclear program over the weekend.

Markets in Japan outperformed as traders continued to monitor movements in the currency market.

During late Asian trade, Hong Kong's Hang Seng Index inched up 0.2%, Australia’s ASX/200 Index ended 0.32% higher, while Japan’s Nikkei 225 Index closed up 1.54%.

Talks among the U.S., Russia, China, Britain, Germany, France and Iran ended in agreement on a "first step deal” that is meant to limit advancements in Iran's nuclear program in exchange for easing economic sanctions against Tehran.

Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than 1 million barrels per day of oil from the global market.

In Tokyo, the Nikkei rallied to the highest level since May as the yen weakened against the U.S. dollar amid mounting expectations that the Bank of Japan will implement additional monetary easing measures next year.

USD/JPY rose to hit a daily high of 101.90, while the yen fell to a fresh four-year low against the euro. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.

Automakers Toyota and Honda saw shares rise 1.45 and 1.6% respectively, while Panasonic and Canon advanced 3.5% and 1.2%.

Index heavyweights Fast Retailing and Softbank saw shares climb 2.45% and 5.4% respectively.

Elsewhere, in Australia, the ASX/200 Index inched higher as gains in the banking and mining sectors boosted the benchmark index.

Australia & New Zealand Banking Group and Westpac Banking Group rose 0.35% and 0.1% respectively, while National Australia Bank added 0.55%.

In the mining sector, Fortescue Metals Group tacked on 0.7%, while Rio Tinto and BHP Billiton inched up 0.2% apiece.

Meanwhile, in Hong Kong, the Hang Seng swung between small gains and losses amid growing concerns the Federal Reserve could begin to slow its bond-purchasing program as soon as December.

Oil major Sinopec lost 2.5% after the government launched a safety investigation at oil and gas pipelines following an explosion at a Qingdao pipeline last week, which killed more than 50 people.

Looking ahead, European stock market futures pointed to a higher open.

The EURO STOXX 50 futures pointed to a gain of 0.55% at the open, France’s CAC 40 futures added 0.5%, London’s FTSE 100 futures indicated a gain of 0.4%, while Germany's DAX futures pointed to an increase of 0.4%.

Meanwhile in the U.S., equity markets pointed to a modestly higher open. The Dow Jones Industrial Average futures pointed to a 0.25% gain, S&P 500 futures signaled a 0.15% advance, while the Nasdaq 100 futures indicated a rise of 0.25%.

The U.S. is to release private sector data on pending home sales later in the day.