Asian stocks rose, with the regional benchmark index rebounding from a one week low, as worries over the health of European banks eased and Japanese shares climbed on a weakening yen.
The MSCI Asia Pacific Index gained 0.3 percent to 140.12 as of 9:11 a.m. in Tokyo. Japan's Topix index rose 0.8 percent as the yen traded at 101.53 against the U.S. dollar, weakening for a fifth straight session. Relief swept over equity markets on Friday as Agence France-Presse reported Deutsche Bank AG is near a $ 5.4 billion deal with the U.S. Department of Justice, less than half the initial amounted requested to settle a probe related to bad mortgages.
"Asian markets all look set to open higher today," Angus Nicholson, a markets analyst in Melbourne at IG Ltd., said in an e-mail to clients. Deutsche Bank's recovery Friday "was a major driver of risk-on sentiment across a range of asset classes."
New Zealand's S&P/NZX 50 Index slipped 0.2 percent. Markets in Malaysia and South Korea are shut for holidays, with those in China closed for the entire week. Australia is open but there will be no settlement because of a holiday in some states.
Japan's quarterly Tankan gauge of business sentiment showed large manufacturers remained more downbeat than expected about business conditions over the past quarter, likely making it more challenging for the central bank to stoke inflation and revitalize the economy.
Concerns about Deutsche Bank's potential impact on the global economy as it struggles with tougher capital standards and soaring legal bills have buffeted markets. The bank was dealt a fresh blow on Saturday when an Italian court charged the company, an employee and five former executives for colluding with Banca Monte dei Paschi di Siena SpA to falsify the Italian lender's accounts in 2008. The lender is also poised to reach an agreement with labor representatives this week to cut about 1,000 jobs, people with knowledge of the matter told Bloomberg News.
"Concern about Deutsche Bank is far from over," Nicholas Teo, a strategist at KGI Fraser Securities in Singapore, said by phone. "Systemic risk is a real possibility with the derivatives exposure that plagues Deutsche."
Futures on Hong Kong's Hang Seng Index advanced 1.1 percent in their most recent trading. Data over the weekend showed China's official factory gauge stayed at the highest level in almost two years for a second month and services increased in the latest evidence of continued economic stabilization, reducing prospects for more policy easing.
Futures on the S&P 500 Index were little changed. The underlying U.S. equity benchmark index gained 0.8 percent on Friday, with the Dow Jones Industrial Average rising more than 160 points.
Oil halted three days of gains since OPEC agreed last week to cut output as U.S. drillers added more rigs and Iran signaled it's seeking to raise exports. The West Texas Intermediate futures fell 0.9 percent in early Asian trading.
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