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Asia stocks rebounded from recent steep losses on Monday with China banks leading the way on talk of strong earnings potential. Japan's benchmark Nikkei rose 0.9 percent (13,360) snapping a six day losing streak. Major household names such as Toyota gained as investors bargain hunted from recently battered shares. But Chinese banks were among the best performers helping Shanghai's stock index jump nearly 5 percent. China Merchants bank, the nation's 6th largest lender, estimated its first half profit more than doubled, sending its shares sharply higher. Recent announcements about loan growth and services have also helped boost the outlook for other big banks such as ICBC. China property stocks also gained on hopes Beijing will relax its monetary tightening campaign, despite rising inflation concerns. But across the region worries over slowing economic growth continued to weigh on investors minds. Oil hovered around $144 a barrel in Asia trade -- sticking close to previous record highs. Tara Joseph-Hui reporting for Reuters.