Chinese Shares Rise in Catchup to Global Rally – Asia Market Wrap

Chinese stocks led Asian equities higher as mainland markets caught up following a holiday break. Most other Asian indexes surged in response to softer-than-expected US payroll statistics on Friday, which renewed chances on Federal Reserve interest rate reduction.

The CSI 300 Index rose as much as 1.8% after being closed from last Wednesday to Friday, while Hong Kong stocks paused after a nine-day gaining streak. Stocks increased in Australia, Taiwan, and Singapore.

The MSCI Asia Pacific Index rose for the third consecutive day, as US market futures edged higher. The gains came as US stocks rose on Friday, with jobs data supporting the idea that the economy is slowing sufficiently for the Fed to begin relaxing policy as early as September.

The yen fell against all of its Group-of-10 peers, driven down by Japan’s large interest-rate differential with the US. Japanese financial markets are closed for a vacation, which means cash Treasuries can be traded until London opens.