Asian Stocks Rise Amid Hopes for a China Stimulus – Asia Market Wrap

Asian stocks climbed on anticipation that China would provide additional stimulus to boost the world’s second-largest economy after the US began its easing cycle. Gold reached a record high.

The MSCI Asia Pacific Index rose as stocks in China, Hong Kong, and South Korea rallied. US equities futures also rose. China announced preparations for a rare economic briefing on Tuesday by three senior financial regulators, just as it slashed one of its short-term policy rates, fuelling speculation that new stimulus is on the way.

Traders are hoping for another round of stimulus measures to resuscitate China’s GDP and energise the global economy. While a slew of Chinese data on Friday added to the bleak picture, US data anticipated later this week are expected to offer investors with new information regarding the speed and scope of further Fed easing.

The Yen fell after BoJ Governor Ueda said Friday that officials are not in a hurry to hike interest rates again. Cash trading in US Treasuries was halted in Asia owing to a holiday in Japan.

The Dollar index was little changed, as Australian bonds dipped ahead of the central bank’s expected extension of a policy halt on Tuesday as housing costs underpin sticky inflation.