Most Asian stock indices rose on Monday as a disappointing economic survey from Japan fanned hopes of more rate cuts and fears that Deutsche Bank (DB - Get Report) will trigger a major financial crisis abated.

In Japan the Nikkei 225 closed up 0.90% at 16,598.67 and the Topix gained 0.60% to close at 1,330.72.

The quarterly Tankan index suggested that manufacturing sector conditions are the weakest since the Bank of Japan launched its quantitative and qualitative easing package of stimulus measures in April 2013 and conditions in the non-manufacturing sector are worsening, noted Capital Economics.

"The survey therefore underlines that the Bank of Japan has more work to do to reach its 2% inflation target," said senior Japan economist Marcel Thieliant.

Investment bank Nomura rose 3% and Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial stabilized after Deutsche Bank surged 14% in New York on Friday on hopes it is close to a deal with the Department of Justice to cut the size of the $14 billion  fine it threatened to slap on the lender for misselling mortgage-backed securities before the credit crisis.

But Kawasaki Heavy tumbled 11% after it slashed its full-year profit forecast by more than half and suggested it might pull out of shipbuilding.

The yen was recently up marginally against both the dollar and the euro, at ¥101.3300 and ¥113.8500, respectively, after declining earlier.

The Hang Seng was recently up 1.27% at 23,563.21 in Hong Kong and on mainland China the CSI Composite was up 0.27% at 3,253.28. Alex Frew McMillan of Real Money, our premium site for active traders, writes that the Shanghai Stock Exchange has reportedly made a bid to buy 40% of the Pakistan Stock Exchange. Click here to check out his analysis.

In Sydney the S&P/ASX 200 was up 0.78% at 5,478.52.

U.S. futures were up marginally, with the Dow Jones mini recently up 0.06% and the S&P 500 mini up 0.05%.

West Texas intermediate was recently down 0.48% at $48.01 a barrel.