Investing.com-- Most Asian stocks rose sharply on Monday as mixed U.S. employment data cemented expectations that the Federal Reserve will keep rates on hold, while markets awaited more stimulus measures from China.
Regional stocks tracked a strong lead-in from Wall Street on Friday, after mixed payrolls and unemployment data showed more cooling in the jobs market, which gives the Fed less headroom to keep raising interest rates. This fed expectations that the central bank will keep and potentially the remainder of the year.
While U.S. rates are likely to remain higher for longer, the prospect of no more rate increases points to some relief for Asian markets, which were battered by rising rates over the past year.
Chinese stocks lead gains on property market relief, stimulus hopes
Hong Kong’s Hang Seng index surged 1.8%, buoyed chiefly by property stocks as Country Garden Holdings (HK: 2007 ) earned bondholder approval to extend some debt deadlines, averting a potential default. The stock jumped nearly 10% and was the top performer on the Hang Seng.
Heavyweight technology stocks were also supported by the prospect of no more U.S. rate hikes, while oil and gas stocks surged tracking strong crude prices.
Focus is now on any more measures from Beijing to shore up economic growth, particularly more supportive measures for the property market after China increased local dollar liquidity and loosened some mortgage rules last week.
Australian stocks rise with RBA pause on tap
The central bank is widely expected to keep rates on pause, given that Australian inflation has cooled substantially in recent months. The bank is also expected to offer no major changes before a coming overhaul in its top brass, with Deputy Governor Michele Bullock set to take over as Governor after Philip Lowe’s (NYSE: LOW ) term ends later this month.
Gains in BHP Group Ltd (ASX: BHP ), the biggest stock on the ASX 200, also supported the index, after the anglo-Australian miner said a Brazilian court had approved its plans to reorganize its Samarco joint venture, as part of the repercussions of a 2015 dam collapse that killed 19 people and was Brazil’s worst ever environmental disaster.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.