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Asian shares rebound as geopolitics subside; Nikkei leads gains

Asian bourses saw robust gains on Monday following a positive lead from Wall Street last week as geopolitical jitters eased. A weaker yen and the release of Chinese inflation data over the weekend also buoyed sentiment.

U.S. stocks jumped on Friday on hints of reduced tensions in the Russian-Ukraine crisis and as Wall Street viewed American military moves in Iraq as limited. Friday proved the best session in five months for both the Dow Jones Industrial Average and S&P 500, which rose 1.1 and 1.2 percent respectively. The Nasdaq climbed 0.8 percent.

Kerry Series, Founder & CIO at Eight Investment Partners, told CNBC Asia's "Street Signs": "We're now in a phase where markets will shrug off bad news and [look] for stable economic growth around the world."

Read MoreGeopolitics move into the background, for now

"There's still good earnings from corporate firms, M&A activities and still relatively easy monetary policy and that's the recipe for markets to go higher and ignore the bad news," he added.

President Barack Obama said on Saturday U.S. airstrikes have destroyed arms that Islamic State militants could have used against Iraqi Kurds, but warned there was no quick fix to the Iraqi crisis.

Over in Gaza, Israel and the Palestinians agreed on Sunday to an Egyptian proposal for a new 72-hour ceasefire in the region.

Symbol
Name
Price
 
Change
%Change
NIKKEI
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HSI
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ASX 200
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SHANGHAI
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KOSPI
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CNBC 100
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Tokyo rallies 2.4%

Japan's benchmark Nikkei index snapped a seven-day losing streak to rake in its biggest daily gain in four months.

A weaker yen, trading rangebound above the 102.1 level against the greenback, also helped sentiment. Exporter stocks like Sharp and Suzuki Motor climbed 2.7 and 2.5 percent each.

Index heavyweight Fast Retailing was also among the top gainers, ended the day 3.1 percent higher.

Read MoreBrace for Japan GDP, it's going to be ugly

Sydney 0.4% higher

The upbeat performance of the U.S. stocks also helped Australian shares to recoup losses on Monday, after the benchmark S&P ASX 200 closed at a new five-week low last Friday.

Shares of Bendigo & Adelaide Bank saw gains of over 2 percent, after the lender announced 5.7 percent rise in its full-year net profit.

Traders were also looking at shares of Treasury Wine, which surged nearly 4 percent, after it said on Monday it received a $3.13 billion takeover approach, from a suitor it didn't identity.

Underperforming its peers was JB Hi-Fi which tumbled more than 7 percent, following a warning that the electronics retailer expected sales in the first half to be impacted by poor tablet computer sales.

Mainland shares up

Mainland shares tracked Asia-wide gains with the Shanghai Composite index up 1.4 percent, after Chinese inflation data for July released over the weekend held steady at 2.3 percent on-year, in line with expectations.

Property stocks also lent support to the benchmark index with Vanke and Poly Real Estate 1.8 and 1 percent higher, respectively, after Fujian province became the first Chinese province to officially loosen its property policy.

Hong Kong shares rose over 1 percent on Monday.

Read MoreSingapore sale no longer a top draw for tourists

Seoul rises 0.4%

South Korean shares similarly saw an upbeat performance on Monday, buoyed by stellar performances of index heavyweights like Samsung Electronics and Posco, which surged 1.6 and 1.3 percent each.

Malaysia Airlines in focus

In Malaysia, shares of Malaysia Airline System (MAS) jumped over 6 percent on Monday after state fund Khazanah Nasional offered to take the troubled airline private last week. Earlier in the trade, it rose as much as 10 percent.

Thai markets are closed for a holiday.

Contact Asia

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