Asian stock markets rise; China Hikes on Repo Rate Cut, Australia Hit by Retailer Losses By Investing.com

Investing.com– Most Asian stocks rose slightly on Monday on lingering cheer about lower interest rates, while Australian markets lagged as major retail shares fell sharply ahead of an antitrust lawsuit .

Chinese markets advanced after the People’s Bank of China cut a short-term lending rate, although overall gains were limited.

Regional trading volumes were held back by a market holiday in Japan. A weak close on Wall Street on Friday also gave average signs, although US stock index futures rose in Asian trade.

But Asian markets had strong gains from the previous week as sentiment was boosted by an interest rate cut by the Federal Reserve, with the central bank also kicking off an easing cycle.

Markets were waiting for a series of key signals from the US for more information on the Fed, with more officials due to speak this week. Key inflation data is also on tap.

Chinese markets rise after repo rate cut

The China and Hong Kong indexes rose 0.5 percent and 0.4 percent, respectively, while the Hong Kong index rose 0.7 percent.

The PBOC cut its 14-day repo rate to 1.85% from 1.95%, further easing local monetary conditions to help boost economic growth.

But the move came just days after the PBOC disappointed markets by leaving its benchmark lending rate unchanged. Chinese indexes were still trading just above seven-month lows hit in early September.

Investors have called on Beijing to implement more stimulus measures amid few signs of economic recovery in the country.

Australian shares hit by retailer losses, RBA on tap

Australia was the worst performer in Asia, losing 0.6% as it eased from record highs.

Losses at supermarket giants Woolworths Ltd (ASX:) and The Coles Group (OTC:) Ltd (ASX:) were the top weights, with the two down between 3% and 4% after Australia’s competition regulator sued the pair for allegedly misleading customers with regarding discounts.

Sentiment towards Australia was also fragile before the end of a meeting on Tuesday. While the RBA is not expected to raise interest rates, it is expected to strike an uneasy chord in the face of persistent labor market strength and sticky inflation.

Broader Asian markets rose amid lingering cheer over lower interest rates. rose 0.9% as local markets were closed for the holiday.

South Korea added 0.1%, while India index futures pointed to a positive open, with the index now eyeing record highs at 26,000 points.