FXstreet.com (Barcelona) - Japan's Nikkei Stock Average hit a 2-month high as investors continue to push higher ahead of the election in Dec-16, with expectations of more agressive monetary policy by the BoJ soon. Tomorrow, the central bank is having its meeting. Japan's Nikkei Stock Average rallied +1.43%, Hong Kong's Hang Seng gained +0.35%, South Korea's Kospi edged higher by +0.93%, Australia's S&P/ASX 200 rose +0.57% and Mainland China's Shanghai Composite closed just below flat at -0.01%.

This week, financial markets will be focusing on the escalating tensions in the Middle East, Greece and the US “fiscal cliff”, while the economic calendar will provide housing data, eurozone flash PMIs, BoE Minutes and China’s HSBC flash PMI. Futures for the German DAX 30 are down by -0.34%, while the French CAC 40 rallies +1.12%.