Asia stocks up on U.S. fiscal hopes, Japan easing talk; Nikkei up 1.49%

Investing.com - Asian stocks moved higher on Monday on hopes the U.S. will avoid careening off a fiscal cliff early next year.

Talk the Bank of Japan will stimulate its economy boosted stock prices as well.

During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.52%, Australia's S&P/ASX200 was up 0.31%, while Japan’s Nikkei 225 Index was up 1.49%.

At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession next year if left unaddressed by Congress.

If untreated, the fiscal cliff could siphon over USD600 billion out of the U.S. economy next year alone in the form of rising taxes and cuts to government spending.

In the U.S. last Friday, Democratic and Republican congressional leaders met with President Barack Obama earlier to discuss ways to avoid the cliff, and both sides emerged afterwards expressing optimism for a deal, which continued to draw investors out of the safe-harbor dollar on Monday and into equities markets.

Stocks saw further gains as the yen continued to soften on building sentiments that opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections.

Abe has said he favors more monetary stimulus to jolt the Japanese economy.

The Bank of Japan will meet this week to discuss monetary policy, and markets are eagerly awaiting the bank's policy statement.

Meanwhile  in Europe on Tuesday, eurozone finance ministers will meet to discuss unlocking Greece’s next tranche of aid.

Hopes European Union policymakers and the International Monetary Fund will disburse aid to crisis-weary Athens fueled the risk-on trading session.

In Hong Kong, top gainers included COSCO Pacific, up 2.96%, China Petroleum & Chemical, up 2.29%, and Esprit Holdings, up 1.81%.

In Australia, top gainers included Lynas Corp., up 15.32%, Billabong International, up 10.81%, and Macmahon Holdings, up 9.91%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.28%, while Germany's DAX 30 futures pointed to a gain of 0.26%. Meanwhile in the U.K., FTSE 100 futures were up 0.06%.

Dow Jones Industrial Average futures were up 0.26%, while the S&P 500 futures were up 0.32%.

Later Monday, the U.S. is to release industry data on existing home sales, a leading indicator of economic health.