Confirming the bullish sentiment in the Asian region, the Japanese stock index Nikkei, rose in early trade on Monday to touch a seven year high. This rise follows a statement by store operator Daimaru that it will be merging its operations with Matsuzakaya Holdings. Daimaru is Japan's fourth largest retailer and Matsuzakaya is the eight largest.
Many of the other retail stocks also moved higher on expectations that more M&A activity may follow this merger.
Other notable gainer was Sapporo Holdings, the parent of Sapporo Breweries. The stock rose 1.23% amid speculation that Asahi Breweries and US hedge fund Steel Partners will both be aggressively bidding to take over Sapporo.
Steel stocks also saw a lot of buying. Investors expect the strong steel demand in the region to continue. Markets also expects more mergers or acquisitions in the sector. Nippon Steel rose by 2.03% or 15 yen to 753 and JFE Holdings rallied 2.79% or 200 yen to 7370.
All other Asian markets are also trading positive this morning.
