Investing.com — Asian stocks rose on Monday, with Japanese shares leading gains as strong U.S. jobs data quelled concerns about an economic slowdown, while hopes for more stimulus measures in China also boosted sentiment.
Regional stocks received positive signals from Friday’s rise on Wall Street, which came on the heels of a stronger-than-expected non-farm payrolls reading. This data dispelled fears about an economic recession in the United States, but it also weakened bets on a sharp cut in interest rates.
US stock index futures rose slightly in Asian trading.
Asian trading volumes were somewhat limited due to the Golden Week holiday in China. But Chinese markets are expected to rise sharply when trade resumes on Tuesday, amid continued jubilation over more stimulus measures in the country.
Japanese stocks lead gains as yen declines
Japanese stock indexes were the best performers in Asia on Monday, rising between 1.8% and 2%. Gains in Japanese markets were also followed by a weaker Japanese yen, amid growing doubts about the Bank of Japan’s ability to raise interest rates further.
7-Eleven owners 7&I HOLDINGS LIMITED (TYO:) rose more than 3% after reports said the company was planning to sell a stake in its supermarket unit, ahead of a widely expected listing.
Separately, it was reported that Canada Alimentation Coach Tard Company (TSX:) has received support from Quebec’s public pension fund to pursue a takeover bid for Seven&i, after the latter rejected an initial offer.
Hong Kong stocks rise, focus on Chinese stimulus
The Hong Kong index rose 0.6%, extending a recent string of gains as optimism over more Chinese stimulus sent investors back into deeply discounted mainland stocks.
Mainland Chinese markets are scheduled to reopen on Tuesday after the Golden Week holiday, and are likely to see strong gains.
China’s top economic planner is scheduled to hold a briefing on Tuesday outlining more stimulus support for the country, following a series of aggressive measures in late September.
These measures sparked strong gains in the indices, enabling them to recover from their lowest levels in almost eight months.
Optimism about China has supported broader Asian markets. South Korea’s index added 0.8%, while Australia’s index rose 0.5%.
Indian index futures pointed to a weak open, after the index fell from its record highs recorded in September.
Beyond China, the focus this week is on a series of speeches from US Federal Reserve officials, as well as consumer inflation data from the world’s largest economy. CME Fedwatch showed that traders were pricing in expectations of another 50 basis point interest rate cut by the Fed in November.