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Nikkei Soars 5% After Upwards Growth Revision

Asian stocks rose on Monday with Japan's benchmark Nikkei rebounding on the back of a strong gross domestic product (GDP) revision and a weaker yen, adding a degree of stability following two weeks of high volatility.

The Nikkei surged closed up 5 percent at a session high, recovering from a previous two-month low while South Korea's Kospi inched up 0.5 percent. Hong Kong's benchmark Hang Seng Index meanwhile, rebounded from a previous seven-week low.

Financial markets in Australia and China were shut for public holidays.

(Read More: An End in Sight for Japan's Turbulent Markets?)

Symbol
Name
Price
 
Change
%Change
NIKKEI
---
HSI
---
ASX 200
---
SHANGHAI
---
KOSPI
---
CNBC 100
---

US Jobs Boost

A decent U.S. employment report late last week boosted Asia's rise appetite. Data on Friday showed the U.S. economy added 175,000 new jobs in May, indicating the economy was expanding modestly, but not enough to convince investors the Federal Reserve could pare back its bond-buying program soon.

Nikkei Rebounds

A revised reading of Japan's first-quarter real gross domestic product (GDP) surpassed market forecasts and confirmed that Prime Minister Shinzo Abe's stimulus policies - dubbed "Abenomics" - are strengthening the economy.

"Instant reaction is yahoo! Clearly, there's a lot more confidence back in this economy. People and corporations are spending more money, that's the only way we would see this sort of GDP growth," said Ed Rogers, CEO & CIO, Rogers Investment Advisors.

Japan's benchmark index crossed the key 13,000 level on the news, with a weakening yen also lending support. The currency fell over 3 percent against the greenback to trade at the 98 handle, well off Friday's two-month high of 95 per dollar.

This led to a monster rally amid exporters with Sharp shooting up 15 percent and Alps Electric rallying 11 percent. Automakers rose with Toyota Motor up by 8.5 percent.

SoftBank shares jumped 9.5 percent after the telco said that it was in talks with Deutsche Telekom over a possible deal for American carrier T-Mobile.

Kospi Off Lows

South Korean stocks were unable to track the Nikkei's stellar gains but still managed to bounce off Friday's eleven-week low of 1,923 points. Gains were capped as caution set in ahead of high-level talks between North and South Korea this week.

Among the key topics that are due to be discussed is the re-opening of the Kaesong industrial complex, which was shuttered earlier this year after ties between Seoul and Pyongyang deteriorated.

Amid market laggards, automakers Hyundai Motor and Kia Motors fell 1 percent each as the yen resumed its pace of declines.

Seoul's benchmark index is trading well below it's 200-day simple moving average of 1,958, which indicates that the market may be in a long-term downtrend.

Hong Kong Up

Hong Kong stocks shrugged off China's dismal economic data over the weekend to track Asia-wide gains. Retailers gained with sportswear brand Li & Fung adding as much as 2 percent .

(Read More: China's Downturn Could Be 'Most Drawn-Out' Since 90s)

Meanwhile, shares of Tencent Holdings, one of China's largest Internet companies, jumped 3 percent on news that it may is expected to acquire a 15 percent stake in Malaysia's Patimas Computers.

By CNBC.com's Nyshka Chandran. Follow her on Twitter @NyshkaCNBC