Asia stocks raise ahead of central bank meetings

Global stocks rose in Asia on Monday as investors awaited central bank meetings that are likely to result in more rate cuts. Key US inflation data is also expected this week, which could further support monetary easing.

China’s central bank reduced its 14-day repo rate by 10 basis points, in addition to a recent cut to its 7-day repo rate. Analysts noted that the adjustment was in line with previous policy changes. Chinese stocks responded positively, gaining 0.3 per cent.

Elsewhere in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, building on a strong performance last week.

Singapore’s main index reached its highest level since late 2007. Japan’s Nikkei was closed for a holiday, but futures traded higher at 38,510.

In currency markets, the dollar strengthened slightly against the yen, while the euro held firm against the dollar.

Gold prices continued to rise, reaching a new all-time high, supported by lower interest rates. Oil prices also firmed, buoyed by geopolitical tensions and expectations of stronger global economic growth.

Attribution: Reuters

Subediting: M. S. Salama