Investing.com– Most Asian stocks kept to a tight range on Monday as focus remained on the upcoming earnings season, while Chinese markets rose in choppy trade after the People’s Bank cut rates slightly more than expected.
Regional markets took some positive cues from Wall Street, as U.S. stock indexes closed near record highs on Friday. Wall Street futures were mildly positive in Asian trade.
A slew of major U.S. and Asian earnings are due in the coming weeks, offering up more cues on corporate profits amid high global interest rates and softer economic conditions.
Chinese stocks rise after PBOC cuts rates
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose around 0.7% in volatile trade after the People’s Bank of China cut its benchmark loan prime rates slightly more than expected.
The LPR cut comes amid a flurry of stimulus measures from Beijing, and was largely expected by markets.
Beijing over the past month unveiled its most aggressive round of stimulus measures yet, flagging both monetary and fiscal steps to improve economic growth.
But while enthusiasm over the new measures initially drove Chinese stocks to two-year highs, they retreated in recent sessions as investors were underwhelmed by a lack of details on the timing and scale of the new measures.
Hong Kong’s Hang Seng index fell 0.2%, reflecting limited optimism among foreign investors over China’s interest rate cut.
A string of recent economic readings also showed little improvement in Asia’s biggest economy.
Still, optimism over more stimulus in China saw Australia’s ASX 200 add 0.6%. The index is heavily exposed to trade with China.
