Investing.com– Most Asian stocks rose slightly on Monday amid persistent cheer over lower interest rates, while Australian markets lagged as major retail stocks fell sharply in the face 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 Friday close on Wall Street also made for middling cues, although U.S. stock index futures rose in Asian trade.
But Asian markets were sitting on strong gains from the prior 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 awaiting a string of key signals from the U.S. for more insight into the Fed, with several officials set to speak this week. Key inflation data is also on tap.
Chinese markets rise after repo rate cut
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.5% and 0.4%, respectively, while Hong Kong’s Hang Seng index added 0.7%.
The PBOC cut its 14-day reverse repo rate to 1.85% from 1.95%, further loosening local monetary conditions to help boost economic growth.
But the move came just days after the PBOC disappointed markets by leaving its benchmark loan prime rate unchanged. Chinese indexes were still trading just above seven-month lows hit earlier in September.
Investors have been calling on Beijing to roll out more stimulus measures amid few signs of an economic pick-up in the country.
