Hang Seng, Nikkei 225 lead Asian markets higher on Monday

Asian stock markets traded mostly higher on Monday, taking cues from Wall Street’s positive finish on Friday and reacting favorably to China’s new stimulus measures aimed at reviving consumption and supporting the stock and real estate markets.

However, concerns over the impact of President Donald Trump’s trade policies continued to weigh on investor sentiment.

The markets will be closely watching the US Fed’s decision scheduled for later this week.

Japan’s Nikkei 225 surges past 37,500

Japanese stocks posted sharp gains, with the Nikkei 225 Index rising 422.14 points, or 1.14%, to close the morning session at 37,475.24.

The index briefly touched a high of 37,561.21 as index heavyweights, exporters, and technology stocks led the advance.

SoftBank Group gained more than 2%, while Uniqlo operator Fast Retailing added almost 1%.

Among automakers, Honda and Toyota both advanced more than 1%, supported by a weaker yen and expectations of strong global demand.

Hong Kong, and China Stocks surge

Hong Kong stocks climbed to a one-week high, supported by better-than-expected economic data from China.

Optimism surrounding Beijing’s newly announced “Special Action Plan to Boost Consumption,” designed to stimulate domestic demand, also fueled the rally.

Additionally, state media outlet Xinhua reported that Beijing intends to stabilize the stock and real estate markets while implementing measures to boost the birth rate.

The Hang Seng Index rose 1.5% to 24,300.85, while the Hang Seng Tech Index edged up 0.1%.

On the mainland, performance was mixed. The CSI 300 Index dipped 0.1%, while the Shanghai Composite Index gained 0.3%, reflecting cautious optimism as investors assessed China’s economic trajectory.

China’s latest economic data showed retail sales increased by 4% in the first two months of the year compared to the same period last year, exceeding Bloomberg’s estimate of a 3.8% rise.

Industrial production expanded by 5.9%, surpassing expectations of 5.3%, while fixed-asset investment grew 4.1%, beating projections of 3.2%.

Other Asian markets on Monday

The Australian stock market saw notable gains, extending its positive momentum from the previous session.

The S&P/ASX 200 Index rose 49.90 points, or 0.64%, to 7,839.60 after touching a high of 7,858.50 earlier in the session.

The broader All Ordinaries Index climbed 57.20 points, or 0.71%, to 8,070.50.

The benchmark KOSPI jumped 1.5% to 2,607.41 points on Monday, reaching its highest level in over two weeks as it tracked Wall Street’s gains from last week amid improved market sentiment.

Tech heavyweights led the rally, with Samsung Electronics surging 4.4% and SK Hynix adding 1.2%.

Wall Street on Friday

Stocks staged a strong comeback on Friday after Thursday’s sharp sell-off, with all major indexes posting substantial gains.

The tech-heavy Nasdaq led the rally, surging 451.07 points, or 2.6%, to close at 17,754.09.

The S&P 500 jumped 117.42 points, or 2.1%, to 5,638.94, while the Dow climbed 674.62 points, or 1.7%, to 41,488.19.

Despite Friday’s rebound, all three major indexes ended the week in the red.

The Dow dropped 3.1% for the week, while the Nasdaq and S&P 500 posted losses of 2.4% and 2.3%, respectively.

The rally was driven by bargain hunting, as traders looked to scoop up stocks at lower valuations after Thursday’s sell-off pushed the Nasdaq and S&P 500 to their lowest closing levels in six months.

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