Asia-Pacific markets mostly climbed on Monday, led by Japan’s Nikkei 225 rising almost 2% as investors look ahead to a week of central bank decisions from around the region.
In Japan, the index gained 697.32 points, or 1.8%, to 39,332.74. Mizuho Financial Group and Nikon were among top gainers on the index.
In Hong Kong, the Hang Seng jumped 362.91 points, or 1.6%, to 23,099.78, closing above 23,000 level for the first time since February 2022.
Separately, shares of video gaming company Nintendo climbed 4.4% on Monday, after Saudi Arabia’s sovereign wealth fund was reported to be considering raising its stake in the company.
Kyodo also reported that the kingdom’s Public Investment Fund is also considering acquiring more shares in Japanese video gaming companies. Currently, the PIF has stakes in Nintendo, Koei Tecmo Holdings as well as in game software developers such as Nexon and Capcom.
The yen strengthened 0.15% to trade at 148.46 after hitting its weakest level in over two months earlier in the session. The dollar gained after a strong U.S. jobs report on Friday, which also reduced expectations that the Federal Reserve would need another 50-basis-pont rate cut.
The yen has also been under pressure after new Japan Prime Minister Shigeru Ishiba said he doesn’t “think the environment is ready for an additional rate hike” from the Bank of Japan.
Three central banks are set to release their interest rate decisions this week, namely the Bank of Korea, the Reserve Bank of New Zealand and the Reserve Bank of India.
Economists polled by Reuters expect the BOK and RBNZ to cut rates, while the RBI will hold.
The BOK on Friday is expected to lower its benchmark interest rate to 3.25% from 3.5%, while the RBNZ is expected to enact a 50-basis-point cut to 4.75% on Wednesday.
Back in August, the RBNZ surprised economists after it lowered its policy rate to 5.25% from 5.5%.
Australian stocks climbed, with lithium stocks listed in Australia rallying after Rio Tinto expressed interest in acquiring U.S. lithium producer Arcadium.
Liontown Resources rose 18.92%, Mineral Resources added 4.61%, while Pilbara Minerals and IGO traded around 1.64% and 2.65% higher, respectively. Arcadium Lithium’s Australia-listed shares surged more than 45%.
CHINA
Markets in Shanghai were shuttered for Golden Week holidays.
Markets in mainland China will reopen on Tuesday, Oct. 8. Chinese stocks had been on a tear after authorities announced a slew of support measures last week.
In other markets,
In Korea, the Kospi index added 40.67 points, or 1.6%, to 2,610.38
In Taiwan, the Taiex index reattached 399.85 points, or 1.8%, to 22,702.56
In Singapore, the Straits Times Index eked up 10.06 points, or 0.3%, to 3,599.19.
In New Zealand, the NZX 50 skidded 23.07 points, or 0.2%, to 12,596.87.
In Australia, the ASX 200 regained 55.4 points, or 0.7%, to 8,205.40.