Asian stocks rise; China up on repo rate cut, Australia hit by retailer losses By Investing.com

Most Asian shares rose slightly on Monday amid continued optimism over lower interest rates, while Australian markets lagged as major retail stocks fell sharply in the face of an antitrust lawsuit.

Chinese markets rose after the People’s Bank of China cut its short-term lending rate, although overall gains were limited.

Regional trading volumes were lower due to a market holiday in Japan. A weak close on Wall Street on Friday also led to a middling signal, although U.S. stock index futures rose in Asian trading.

But Asian markets were sitting on strong gains from last week, as sentiment was boosted by a rate cut by the Federal Reserve, with the central bank also launching an easing cycle.

Markets were awaiting a series of key signals from the US for more insights on the Federal Reserve, with several officials scheduled to speak this week. Key inflation data is also due.

Chinese markets rise after repo rate cut

Chinese stock indices rose 0.5% and 0.4% respectively, while Hong Kong’s index added 0.7%.

The People’s Bank of China cut the 14-day reverse repurchase rate to 1.85% from 1.95%, further easing domestic monetary conditions to help boost economic growth.

But the move came just days after markets were disappointed by the People’s Bank of China’s decision to keep its key lending rate unchanged, and Chinese indices were still trading slightly above seven-month lows hit earlier in September.

Investors have been calling on Beijing to roll out more stimulus measures amid scant signs of economic recovery in the country.

Australian shares hit by retail losses, RBA on edge

The Australian stock market was the worst performer in Asia, losing 0.6% after falling from record highs.

Losses at supermarket giants Woolworths Ltd (ASX:) and Coles Group OTC: Ltd (ASX:) was the heaviest weight, with both shares falling between 3% and 4% after the Australian Competition and Infrastructure Commission filed a lawsuit against the companies for misleading customers about discounts.

Sentiment towards Australia was also weak ahead of Tuesday’s Reserve Bank of Australia meeting. While the RBA is not expected to raise interest rates, it is expected to take a hawkish stance in the face of continued strength in the labour market and steady inflation.

Broader Asian markets rose amid continued optimism about lower interest rates. China’s stock index rose 0.9%, as local markets were closed for a holiday.

South Korea’s benchmark index rose 0.1%, while India’s Nikkei futures pointed to a positive open, with the index now approaching record highs of 26,000 points.