Asia-Pacific markets climbed on Monday, with Japan’s Nikkei 225 leading gains in the region after a key U.S. inflation report late Friday raised hopes for an interest rate cut.
In Japan, the index rebounded 801.22 points, or 2.1%, to 38,468.63.
In Hong Kong, the Hang Seng index sprinted 217.03 points, or 1.3%, to 17,238.34.
The Japanese yen strengthened 0.31% against the greenback to trade at 153.26.
Automaker Mitsubishi Motors was one of the top gainers in the Nikkei index, rising over 5% after Nikkei Asia reported that the company will join the Honda-Nissan alliance to standardize in-vehicle software.
Shares of Eisai, however, plunged 13% after the European Medicines Agency on Friday did not approve the drugmaker’s Leqembi treatment for Alzheimer’s disease, making it the biggest laggard among the 10 Nikkei 225 stocks that fell amid a broad rally.
In Asia, the highlight for this week will be the Bank of Japan’s monetary policy meeting starting July 30. A Reuters poll of economists expects the central bank to raise rates by 10 basis points to 0.1%.
A note from ING has said that the bank will lift rates by 15 basis points and reduce its bond-buying program simultaneously.
CHINA
In Shanghai, the CSI 300 lost 18.55 points, or 0.5%, to 3,390.74.
Other key inflation data from the region include China’s July PMI data, while Australia will release its latest set of inflation data before the central bank’s Aug. 6 monetary policy meeting.
In other markets
In Taiwan, the Taiex index recovered 45.28 points, or 0.2%, to 22,164.49.
In Singapore, the Straits Times Index soared 17.71 points, or 0.5%, to 3,444.18.
In Korea, the Kospi index jumped 33.63 points, or 1.2%, to 2,765.53.
In New Zealand, the NZX 50 dumped 35.85 points, or 0.3%, to 12,313.63.
In Australia, the ASX 200 gained 68.38 points, or 0.9%, to 7,989.64.
