Investing.com -- Most Asian stocks rose sharply on Monday, with Chinese shares in the lead after the country rolled out more measures to support its battered equity markets, while focus turned to key indicators from the world's largest economies this week.
Optimism over China also helped markets somewhat look past hawkish signals from Federal Reserve Chair Jerome Powell, who said on Friday that U.S. interest rates could potentially rise further to curb sticky inflation.
Chinese markets rally on stock market support
China over the weekend announced new measures to draw investors back into its battered stock markets, by most notably halving the stamp duty on stock trades. Chinese exchanges were also seen lowering their margin requirements.
The move saw Chinese indexes jump from their weakest levels for the year, although analysts warned that the rally was likely to be short-lived.
Property stocks were among the top performers as Beijing also loosened some mortgage restrictions.
China Evergrande Group (HK: 3333 ) was the sole exception among its peers, with the real estate developer tumbling over 80% after its shares resumed trading in Hong Kong following a 17-month break.
Dealmaking activity also boosted some Chinese stocks, with beleaguered property developer Country Garden Holdings (HK: 2007 ) up nearly 8% after it sold a stake in a Guangzhou project to raise its cash levels.
Australia’s ASX 200 rose 0.6% as data showed that retail spending remained strong through July, indicating some economic resilience despite high interest rates in the country.
Futures for India’s Nifty 50 index pointed to a stronger open for local stocks.
China PMIs, U.S. inflation awaited this week
Markets are now awaiting a slew of key economic indicators this week, with purchasing managers’ index (PMI) data from China, due on Thursday and Friday.
China’s manufacturing sector is expected to have contracted for a fourth consecutive month, presenting more economic headwinds for Asia’s largest economy.
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