Asian stocks mostly climbed on Monday, following the upward trend in Wall Street as disappointing payrolls data revived expectations for rate cuts. Chinese markets, reopening after a prolonged weekend, saw notable gains. However, trading volumes were subdued due to market holidays in Japan and South Korea.
U.S. stock index futures showed slight gains during Asian trading, following a robust session on Friday. Investors are now awaiting speeches from key Federal Reserve officials this week for further insight into interest rate movements.
Most Asian markets had experienced significant losses throughout April. Chinese stocks surged to seven-month highs, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rising by 1.6% and 1.1% respectively. This surge followed a remarkable recovery over the past two months, supported by news that Beijing had relaxed strict home owning restrictions, expected to boost the struggling property market. Additionally, private purchasing managers index data indicated ongoing resilience in China's services sector, a major driver of business activity.
Chinese stocks have rebounded strongly from February's five-year lows, driven by optimism surrounding potential economic growth. Beijing has maintained monetary stimulus measures and eased restrictions on various industries to stimulate growth. The gains in mainland stocks also influenced a modest increase in Hong Kong's Hang Seng index, which had recently entered a bull market from its February lows.
Australian stocks also rose, with the ASX 200 gaining 0.6% in line with its U.S. and Chinese counterparts. However, there was apprehension ahead of the Reserve Bank of Australia meeting on Tuesday. While the RBA is expected to maintain current interest rates, analysts caution against a potentially more hawkish outlook, particularly after higher-than-expected inflation data for the first quarter. Any signals of a more hawkish stance from the RBA could unsettle Australian stocks.
Overall, broader Asian markets remained subdued due to ongoing market holidays. Futures for India’s Nifty 50 index indicated a positive start, poised to recover from Friday's losses in line with gains seen in other Asian markets.
Paraphrasing text from "Investing" all rights reserved by the original author.
