(Bloomberg) — Asian stock benchmarks rose as risk sentiment improved after weaker-than-expected U.S. payrolls data revived bets that the Federal Reserve will cut interest rates this year. The Chinese stock market climbed after it reopened after a holiday break.
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China's CSI 300 Index climbed as much as 1.6% as Beijing's supportive policy stance boosted momentum. The Hong Kong benchmark Hang Seng Index rose for the tenth straight session. The Japanese markets are closed for a holiday.
Global stock markets have been boosted after data showing U.S. employers have slashed hiring fueled investor expectations that a data-reliant Fed could start easing policy later this year.
Chinese market sentiment appears to be improving incrementally, said Nicholas Yeo, head of China equities at abrdn Plc, citing strong travel data, better-than-expected corporate results and stock market reforms. “More material support through larger-than-expected budget spending and additional help for the real estate market could significantly improve sentiment in China.”
Oil prices rose in early trading after Israel closed the Kerem Shalom humanitarian border crossing into Gaza on Sunday following a barrage of rockets fired by Hamas, an incident that could derail weeks of delicate hostage and ceasefire negotiations. Saudi Arabia has increased the price of crude oil to Asia in an attempt to tighten the oil market.
Traders will also be eyeing a series of central bank meetings this week, led by a likely hawkish Reserve Bank of Australia on Tuesday, following stronger-than-expected inflation data last month. Chinese activity data and inflation rates in key emerging markets will also follow.
Some important events this week:
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China Caixin serves PMI, Monday
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Eurozone S&P Global Services PMI, PPI, Monday
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Tariff decision Australia, Tuesday
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Eurozone retail sales, Tuesday
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UBS earnings, Walt Disney, BP earnings, Tuesday
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Minneapolis Fed President Neel Kashkari speaks Tuesday
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Brazil interest rate decision, Wednesday
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Tariff decision Sweden, Wednesday
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Toyota earnings, Wednesday
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Chinese trade, Thursday
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Tariff decision Malaysia, Thursday
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Mexico CPI, interest rate decision, Thursday
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British BOE interest rate decision, Thursday
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Unemployment Canada, Friday
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UK industrial production, GDP, Friday
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Chicago Fed President Austan Goolsbee will speak on Friday
Some of the biggest moves in the markets: Stocks
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Futures on the S&P 500 were little changed at 10:47 a.m. Tokyo time
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Nikkei 225 futures (OSE) rose 1%
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Australia's S&P/ASX 200 rose 0.6%, more than any closing gain since April 29
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Hong Kong's Hang Seng fell 0.3%, more than any closing loss since April 19
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The Shanghai Composite rose 0.9%, more than any closing gain since April 26
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Euro Stoxx 50 futures rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0766
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The Japanese yen fell 0.3% to 153.55 per dollar
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The offshore yuan fell 0.3%, more than any closing loss since April 10
Cryptocurrencies
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Bitcoin rose 0.6% to $64,146.03
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Ether rose 0.2%, rising for the fifth day in a row, its longest winning streak since April 8
Bonds
Raw materials
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West Texas Intermediate crude rose 0.3% to $78.31 a barrel, ending a five-day streak of 6.8% decline
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Spot gold rose 0.2% to $2,306.59 an ounce
This story was produced with the help of Bloomberg Automation.
–With help from Sangmi Cha.
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