Asian stocks bounced back, with China leading after data confirmed a massive increase in profits earned by the country's industrial firms.

The dollar rose against other major currencies while euro sank lower.

Recent facts show that the Chinese economy is powering though the support added by its government's stimulus measures.

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Profits incurred by Chinese industrial firms surged 17.9 percent in June from the previous year, after acquiring an increase of 8.9 percent in May, according to the data from National Statistics Bureau on Sunday.

It was the largest gain since September last year where an 18.4 percent climb was recorded.  

Hang Seng China Enterprise Index (HSCEI), a stock market index in Hong Kong, advanced 1.1 percent today after climbing 5.3 percent last week while Shanghai Composite Index jumped two percent.

China's CSI 300 index was 2.3 percent high while Tokyo's Nikkei, with a six-month hit on Friday, jumped 0.5 percent.

The amount of Chinese stocks in Hong Kong traded at 7.7 times estimated profits, compared with 13.6 times for MSCI AC Asia Pacific Islamic Index measure.

Funds from investors in the Middle East were pouring in again as the fasting month of Muslim ends, contributing to the rise of regional stocks, says Japanese chief strategist Soichiro Monji.

However, geopolitical concerns are still present with the current Ukraine crisis, he added.

Meanwhile, euro traded changed at $1.3432, close to $1.3421 on Friday, its lowest recorded exchange since November 2013.

The euro took another blow when Ifo Business Climate Index of Germany asserted a poor economy, while London oil rates dropped 0.4 percent.

It had already been pushed to its limits from factors including the diverging interest rates shown favoring U.S. and expectations of easing by European Central Bank.

TagsChina Shares, Hang Seng China Enterprise Index (HSCEI), Ifo Business Climate Index, MSCI AC Asia Pacific Islamic Index