Investing.com – Most Asian shares rose on Monday, tracking gains on Wall Street as weak employment data sparked renewed expectations for a rate cut and Chinese markets returned from a long weekend with outstanding gains.
However, regional trade volumes were constrained by market holidays in Japan and South Korea.
US stock index futures edged marginally higher in Asian trading after a strong session on Friday, and markets are now looking to several key Federal Reserve officials to speak this week for more interest rate signals.
Most Asian markets suffered huge losses in April as
Chinese stocks surge back to 7-month high
China and indexes rose 1.6% and 1.1% respectively, catching gains from their peers after the long weekend. Both indexes were at their highest levels since early October after strong recoveries over the past two months.
Markets were also reacting to news last week that Beijing had eased strict homeownership restrictions in the property market, a move that is expected to bolster the beleaguered sector.
Private Purchasing Managers’ Index data showed the continued strength of China’s economy, which was a key driver of business activity last year.
Chinese stocks marked a strong recovery from five-year lows hit in February amid some optimism that the country’s economic growth will pick up. Beijing has largely maintained its monetary stimulus while easing restrictions on some industries to boost growth.
Gains in mainland Chinese stocks helped fuel some gains for Hong Kong’s index, which has faced resistance since emerging from February lows into a bull market.
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Australian shares rise with RBA in focus
Australian shares added 0.6%, tracking gains in peers from the US and China.
But sentiment towards Australia remained on edge ahead of Tuesday’s meeting.
While the RBA is expected to keep rates unchanged, analysts have warned of a more hawkish outlook from the bank, especially after inflation data was much higher than expected for the first quarter.
Any hawkish signals are likely to rattle Australian shares.
Asian markets were generally sluggish due to market holidays.
Indian index futures are pointing to a positive opening, with the index expected to recover from Friday’s losses, tracking gains in its Asian peers.