Investing.com – Most Asian stocks rose on Monday, recovering from sharp declines the previous week as bets grew that the conflict between Iran and Israel will not escalate, although sentiment remains on edge.
The decline in technology stocks appears to have ended after the sector, particularly chipmakers, suffered heavy losses last week.
U.S. stock index futures also rose in Asian trading as Wall Street braces for a recovery from sharp losses last week.
Chinese stocks rise as benchmark lending rate remains stable
China and indexes rose 0.4% and 0.3%, respectively. The two indexes were among the few Asian bourses to end the week on a positive note as the prospect of additional support from Beijing bolstered sentiment on local markets.
The People’s Bank of China left its target unchanged at a record low on Monday as it sought to keep monetary conditions as loose as possible to support the economic recovery.
A further cut in the benchmark lending rate could be planned later this year, given that Beijing still needs to increase the pace of stimulus to support the economy.
Hong Kong’s index jumped 2.3% on Monday, rising from
Asian markets rise as Iran and Israel fear weakening
Asian markets broadly recovered from last week’s losses as the lack of immediate escalation between Iran and Israel helped improve sentiment.
Japan’s indexes and indices rose 0.8% and 1.2%, respectively, after falling 4% to 6.5% over the past week.
This week’s focus will be on events that take place later this week. The Bank of Japan will meet for the first time since its historic interest rate hike in March.
In Australia, the index rose 1% after falling 2.8% last week, and in South Korea it rose 0.9% after falling 3.4% last week.
India index futures are also pointing to a positive opening.
Regional markets fell on Friday after Israel reportedly launched strikes in and around Iran.
But Iran played down the impact of the attacks and did not present any immediate plans to retaliate. This has raised hopes that the conflict between Iran and Israel will not escalate into a wider war in the Middle East.
However, sentiment towards risk markets, particularly equities, remained fragile, especially in the face of higher, longer-term US interest rates.
Asian markets continued to have a weak start to the second quarter and are now awaiting a host of key signals from the US this week.
Several US tech giants are set to report quarterly profits this week, while data – the Federal Reserve’s preferred measure of inflation – is also available.