Asian stocks rise on US payrolls cheer, China stimulus hopes By Investing.com

Investing.com– Asian stocks rose on Monday, with Japanese shares leading gains as strong U.S. payrolls data eased concerns about an economic slowdown, while hopes of more stimulus in China also helped , the feeling.

Regional stocks took positive signs from a rally on Wall Street on Friday, which came on the back of a substantially stronger-than-expected non-farm payrolls reading. The data dispelled fears of a US recession, but also hurt bets on a sharp interest rate cut.

U.S. stock index futures rose slightly in Asian trade.

Trading volumes in Asia were somewhat limited by the Chinese Golden Week holiday. But Chinese markets are set to rise sharply when trading resumes on Tuesday amid lingering cheer for more stimulus from the country.

Japanese stocks lead gains as yen falls

Japan and indices were the best performers in Asia on Monday, rising between 1.8% and 2%. Gains in Japanese markets also tracked weakness in the Japanese yen amid growing doubts about the Bank of Japan’s ability to raise interest rates further.

7-Eleven owner Seven & i Holdings Co., Ltd. ( TYO: ) rose more than 3% after reports said the firm planned to sell a stake in its supermarket unit ahead of a widely anticipated listing.

Separately, reports said that Canada Alimentation Couche Tard Inc (TSX: ) has received backing from Quebec’s public pension fund to pursue a takeover bid for Seven & i after the latter rejected an initial offer.

Stocks of Hong Kong, China stimulate in attention

Hong Kong’s index rose 0.6 percent, extending a streak of recent gains, as optimism over more Chinese stimulus drew investors back into deeply discounted mainland shares.

Markets in mainland China are set to reopen on Tuesday after the Golden Week holiday and are likely to post strong gains.

China’s top economic planner is scheduled to hold a briefing on Tuesday to outline more stimulus support for the country after a series of strong measures in late September.

These measures caused strong gains in the indexes as well, allowing them to recover from near eight-month lows.

Optimism about China supported broader Asian markets. South Korea added 0.8 percent, while Australia rose 0.5 percent.

Futures for India’s index pointed to a subdued open after the index eased from record highs hit in September.

Beyond China, the focus this week is on a series of addresses by US Federal Reserve officials, as well as consumer inflation data from the world’s largest economy. Traders were seen pricing in expectations for another 50 basis point rate cut by the Fed in November, CME Fedwatch showed.