Asian stocks ex-Australia rally, Nikkei hits fresh 10-month tops

The stocks on the Asian indices extended gains into a second day this Monday amid renewed optimism led by higher oil prices, after the OPEC is seen reaching an output cut deal at its meeting this week, which helped underpin the resource and energy stocks.

The Japanese Nikkei 225 index rallied and hit fresh multi-month tops after the yen weakened to new yearly highs against the greenback, adding to the upside in the exports-oriented stocks on the index. USD/JPY trades near half-yearly highs reached at 111.12 in early Asia.

While the Australian benchmark, ASX 200, bucks the trend and trades modestly lower, with no specific catalyst seen behind the weakness. Further, the CBOE Volatility Index (VIX), a fear gauge, drops over -3.75s%, suggesting risk-on market profile and hence, adds to the upbeat tone around the Asian indices.

Meanwhile, Japan’s Nikkei 225 rises almost +0.60% to 18,070, the Australian S&P/ASX 200 trades -0.09% lower around 5,350. The Chinese equities rally, with the benchmark Shanghai Composite index up +1%, while CSI300 index jumps +1.30%. Hong Kong markets trade +0.26% higher around 22,400 levels.