Investing.com – Most Asian shares rose on Monday as markets welcomed stimulus measures in China, while technology indexes also rose as investors piled into the sector ahead of key reports this week.
Most regional markets pulled ahead last week as some weak U.S. inflation readings fueled hopes that the Federal Reserve will cut interest rates this year. Wall Street hit record highs last week and US stock index futures extended gains in Asian trading on Monday.
This week’s focus will also be on new hints about the Fed meeting in late April, as well as speeches from a host of Fed officials.
Chinese stocks peak in 2024 as markets mull stimulus measures
China’s indexes and indices rose 0.2% and 0.3% respectively on Monday, extending gains from last week. Both indices hit seven- and eight-month highs.
Beijing last week rolled out a series of measures to support the economy, particularly the property market, as it seeks to shore up a sluggish economic recovery.
China has eased restrictions on home purchases in several major cities and has also reportedly instructed state governments to begin buying up homes.
China also kept its core reading at a record low on Monday.
However, growth in Chinese markets was limited, especially after April’s average economic performance. Retail spending and capital investment in the country remain weak, which will likely require additional stimulus from Beijing.
Concerns about a renewed trade war with Washington also carry weight after Beijing banned some U.S. firms from importing and exporting China-related activities. The move was seen as a potential response to recent increases in US tariffs on key Chinese industries.
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Technology indices were the best performers of the day. The Japanese index added 1.3%, while South Korea and Hong Kong added 0.6% and 0.4%, respectively.
Investors have poured money into the sector ahead of quarterly earnings from artificial intelligence darling NVIDIA Corporation (NASDAQ:) due this Wednesday to get more information about whether demand for the growing industry will remain strong.
Nvidia is considered a leader in the technology industry, especially given its growing involvement in the artificial intelligence industry over the past year. The firm actually led the surge in valuations in the technology sector driven by artificial intelligence.
Technology stocks also rose slightly from last week after optimism about lower U.S. interest rates pushed Treasury yields lower.
Broader Asian markets also rose. Rising prices for metals and other metals lifted Australian prices by 0.6%, led by gains in mining shares.
Thailand grew 0.2% as gross domestic product data showed the economy grew much more than expected in the first quarter.