Investing.com - Asian stock markets rallied sharply on Monday, with markets in Japan surging to the highest level since December 2007 after the government upgraded its outlook for the domestic economy.
During late Asian trade, Hong Kong's Hang Seng Index was up 1.6%, Australia’s ASX/200 Index ended 0.6% higher, while Japan’s Nikkei 225 Index rallied 1.5%.
Market sentiment was further boosted after U.S. equities closed at a fresh record high on Friday after data showed that U.S. consumer sentiment rose more than expected in May, climbing to an almost six year high.
In Tokyo, the Nikkei rose to a fresh five-and-a-half-year high as the yen hovered near the lowest level since October 2008 against the U.S. dollar.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Automakers Toyota and Honda rose 1.9% and 2.3% respectively, while Sony rallied 5.7%.
Meanwhile, in Hong Kong, the Hang Seng climbed to a three-month high as oil producers performed strongly on the back of rising energy prices.
Oil majors CNOOC and PetroChina saw shares gain 2.3% and 1.2% respectively, while Sinopec tacked on 1%.
Index heavyweight Tencent Holdings saw shares rally 5.3% as investors continued to buy into the stock following last week’s stronger-than-expected quarterly earnings.
Elsewhere, in Australia, the benchmark ASX/200 Index edged higher as miners supported gains.
BHP Billiton saw shares rise 1.7%, while Mirabela Nickel and Bluescope Steel surged 9.7% and 5% respectively.
Looking ahead, European stock market futures pointed to a modestly lower open.
The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a flat open.
During late Asian trade, Hong Kong's Hang Seng Index was up 1.6%, Australia’s ASX/200 Index ended 0.6% higher, while Japan’s Nikkei 225 Index rallied 1.5%.
Market sentiment was further boosted after U.S. equities closed at a fresh record high on Friday after data showed that U.S. consumer sentiment rose more than expected in May, climbing to an almost six year high.
In Tokyo, the Nikkei rose to a fresh five-and-a-half-year high as the yen hovered near the lowest level since October 2008 against the U.S. dollar.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Automakers Toyota and Honda rose 1.9% and 2.3% respectively, while Sony rallied 5.7%.
Meanwhile, in Hong Kong, the Hang Seng climbed to a three-month high as oil producers performed strongly on the back of rising energy prices.
Oil majors CNOOC and PetroChina saw shares gain 2.3% and 1.2% respectively, while Sinopec tacked on 1%.
Index heavyweight Tencent Holdings saw shares rally 5.3% as investors continued to buy into the stock following last week’s stronger-than-expected quarterly earnings.
Elsewhere, in Australia, the benchmark ASX/200 Index edged higher as miners supported gains.
BHP Billiton saw shares rise 1.7%, while Mirabela Nickel and Bluescope Steel surged 9.7% and 5% respectively.
Looking ahead, European stock market futures pointed to a modestly lower open.
The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.1%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a flat open.