China Gains & Fed Optimism Pushes Stocks Higher – Asia Market Wrap

Stocks rose on Monday as traders braced for a slew of central bank meetings this week, including one in which the Fed is largely expected to slash rates.

MSCI’s Asian equities index increased 0.3%, with the technology sector contributing the most to the increase. S&P 500 futures rose 0.2%, while Nasdaq 100 contracts rose 0.3%. European stock futures were flat. Equities in mainland China outperformed, aided by some government plans aimed at attracting investments into the stock market and better-than-expected export data.

Japan’s economy contracted in the three months ending in September, the government acknowledged in a revised report on Monday, as evidence emerged over the weekend that the country’s relations with China were deteriorating. The statistics added complication to the BoJ’s impending policy meeting next week, but it is unlikely to derail its steady hike path.

Defence stocks in Japan and China increased on Monday. The two countries traded complaints as their simmering diplomatic conflict heated up over the weekend, as Chinese fighter planes trained their fire-control radar systems on Japanese military fighters for the first time.

Meanwhile, the Dollar index fell on Monday, and Treasury yields remained stable. Silver fluctuated near a record, but gold soared as China’s central bank increased its bullion stockpiles for the 13th consecutive month in November. Oil prices stabilised as traders watched India’s purchase of Russian oil and Ukrainian strikes on its neighbor’s energy infrastructure.