LONDON (The Deal) -- Asian markets staged a comeback overnight, with Japan leading the way. But the beams from the Land of the Rising Sun failed to penetrate the gloom in Europe early Monday

In Tokyo, the Nikkei 225 was up a huge 3.98% at 15,111.23, wiping out much of last week's slide. The surge was fueled by reports that the massive Government Pension Investment Fund may step up investment in equities. Not even the resignation of two government ministers over political funding and donations dented the mood on the markets. Hong Kong closed up 0.2% at 23,070.26, while China's Shanghai Composite was up 0.66% at 2,356.73, despite gloomy predictions that the country will miss growth targets when third-quarter GDP figures are published on Tuesday. 

But in Europe, the markets are unimpressed. In London, the FTSE 100 was down 0.58% at 6,273, weighed down by financial stocks, while in Paris, the CAC40 was down 0.5% at 4,013. Frankfurt's DAX was down 0.93% at 8,767.

In Germany, software group SAP (SAP) - Get Report  delivered disappointing third-quarter earnings and suggested full-year profit would be less than previously expected. SAP was the biggest faller in Frankfurt. The stock was down 4.17%.

But sports-shoe maker Adidas (ADDYY) was up 4.93% on reports of a private-equity offer for its U.S. subsidiary Reebok. Adidas bought the company for $3.8 billion in 2006, but The Wall street Journal reported that investors from Hong Kong and Abu Dhabi, led by Jynwel Capita,l have approached Adidas with a $2.2 billion offer.

In London, troubled supermarket giant Tesco (TSCDY)  topped the leaderboard with a 2.26% rise to 178.50 pence, after the Times of London reported that big private-equity firms as well as sovereign wealth funds and even some local retailers are circling parts of its 9 billion pounds ($14.5 billion) Asian unit. The retailer has strong market positions in Thailand, Malaysia and South Korea and has forged joint ventures in China and India. It's been a rare bright moment for the company since its admission that it misstated first half profits. Tesco will publish delayed interim results on Thursday.

Another London riser was the Spirit Pub, which reacted positively to a proposed cash and shares bid from larger rival Greene King, valuing its shares at 723 million pounds , and giving Spirit's shareholders 29% of the combined company. The offer was 9.5% higher than Greene King's previous all-share approach. Spirit was up 7.69% at 98 pence, while Greene King was also up 0.26% at 770 pence.

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