Asian stocks cheered by China stimulus; Nikkei near 33-yr peak
Investing.com-- Most Asian stocks rose on Monday, tracking a rebound in Chinese markets on the promise of more government stimulus measures, while Japan’s Nikkei 225 briefly hit an over 30-year high.
But gains were still limited in anticipation of more cues from the Federal Reserve this week, while technology stocks were on edge as markets awaited key quarterly earnings from NVIDIA Corporation (NASDAQ:NVDA) on Tuesday.
An interest rate decision in China appeared to have provided few cues to markets, as the People’s Bank of China kept its loan prime rate near record lows, as widely expected. The PBOC also injected about 80 billion yuan of liquidity into markets.
But Chinese stocks were supported by a rebound in property stocks, after Chinese regulators vowed to provide more policy support to the beleaguered real estate sector.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite trimmed a bulk of early losses to rise 0.5% each, while Hong Kong’s Hang Seng surged 1.6%, rebounding from two days of steep losses.
Australia’s ASX 200 rose 0.2%, supported by some strength in commodity stocks. Focus was now on the minutes of the Reserve Bank of Australia’s November meeting for more cues on monetary policy, after the bank raised interest rates but offered a somewhat dovish outlook.
Broader Asian markets were also cautious before the minutes of the Federal Reserve’s late-October meeting, which were due on Tuesday. The minutes are expected to offer more cues on the path of U.S. interest rates, after the central bank kept rates steady in October.
Still, a slew of recent readings on the labor market and inflation suggested that the Fed was done raising interest rates, which in turn boosted Asian stocks over the past week.
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