Asian stocks showed signs of recovery on Monday, with most markets advancing after a strong close on Wall Street last week. Investors are eagerly awaiting more cues on U.S. inflation and interest rates later this week.
In China, both the Shanghai and Shenzhen indexes edged higher, with industrial profits showing improvement in April. Despite recent stimulus measures from Beijing, analysts remain cautious about the execution and funding of these initiatives.
Meanwhile, Hong Kong’s Hang Seng index fell on losses in mainland stocks, reflecting the mixed sentiment in the region.
Across Asia, gains were limited as investors awaited key U.S. inflation data. The Personal Consumption Expenditures (PCE) data, due later this week, is expected to influence the outlook for U.S. rates.
In Japan, the Nikkei rose 0.3%, while South Korea’s KOSPI added 0.7% on gains in technology stocks. The hype over artificial intelligence, fueled by NVIDIA Corporation’s blowout results, boosted SK Hynix Inc to a record high.
Trilateral trade talks between China, Japan, and South Korea also contributed to the positive sentiment in the region.
Australia’s ASX 200 rebounded from losses last week, rising 0.7%, while futures for India’s Nifty index pointed to a mildly positive open.
Overall, Asian markets are cautiously optimistic as they navigate through uncertainties surrounding U.S. economic data and global trade dynamics. Investors will be closely monitoring developments in the coming days for further direction.
