Asia stocks broadly higher on EU hopes; Nikkei gains 1.5%

Forexpros – Asian stock markets were broadly higher on Monday, as sentiment was boosted over a proposed plan to resolve the financial crisis in the single currency bloc following a weekend summit of Group of 20 financial leaders.

During late Asian trade, Hong Kong's Hang Seng Index rallied 1.9%, Australia’s ASX/200 Index climbed 1.65%, while Japan’s Nikkei 225 Index jumped 1.5%.

At the conclusion of the G-20 summit in Paris on Saturday, world financial leaders urged policy makers in the euro zone to deal “decisively” with the region’s ongoing debt crisis.

European leaders may complete the rescue plan at a summit on October 23, in time to present to a meeting of G-20 leaders early next month.

Shares in Japanese lenders helped the Nikkei rise to a six-week high. The nation’s biggest bank Mitsubishi UFJ Financial Group saw shares climb 1.8%, rival Sumitomo Mitsui Financial Group rose 2.8%, while Mizuho Financial Group added 2.75%.

Japanese exporters also performed strongly, boosted by a report Friday showing that retail sales in the U.S. rose 1.1% in September, the biggest gain in seven months.

Shares in consumer electronics giant Sony rallied 4.95%, semiconductor manufacturer Elpida Memory gained 2.5%, while automakers Honda and Toyota saw shares jump 3.6% and 2.85% respectively.

On the downside, camera maker Olympus saw shares plunge 23.95% after a number of brokerages downgraded the stock following the shock dismissal of chief executive Michael Woodford on Friday.

Elsewhere, in Hong Kong, raw material producers led gains after oil and metal prices advanced, boosting earnings prospects for miners and energy explorers.

China’s largest aluminum producer Aluminum Corporation of China saw shares surge 7.2%, oil and gas giant PetroChina jumped 4.7%, while copper producer Jiangxi Copper Company rallied 5.9%.

Shares in the financial sector also contributed to gains, with China Construction Bank shares gaining 1.55%, Bank of China Hong Kong shares climbing 2.8%, while shares in insurance company Ping An rose 6.1%.

Meanwhile, European stock markets were up sharply after the open. The EURO STOXX 50 advanced 1.6%, France’s CAC 40 rose 1.4%, the FTSE 100 added 1.3%, while Germany's DAX surged 1.8%.

Later in the day, the U.S. was to publish official data on industrial production, as well as a report on manufacturing activity in New York state.