Asian Shares Advance As China Unveils Steps To Boost Market

(RTTNews) - Asian shares advanced on Monday as investors cheered China's stimulus to ease market unrest and drive economic growth.

Chinese authorities announced a slew of measures over the weekend to bolster the country's equity markets and fuel an increase in spending.

The measures included a 50 percent reduction in stamp duty on stock trades and a slower pace of initial public offerings.

China's securities regulator also approved the launch of 37 retail funds.

Meanwhile, investors shrugged off data showing that profits at China's industrial firms extended a slump into a seventh month.

The dollar fell against a basket of currencies ahead of key U.S. jobs and inflation readings due this week.

Gold was little changed, defying Fed Chair Jerome Powell's hawkish tone on interest rates.

Oil prices edged higher as China's latest stimulus measures helped to alleviate fuel demand concerns.

Chinese shares climbed after authorities cut stamp duty and margin ratios for leveraged trades.

The benchmark Shanghai Composite index settled 1.13 percent higher at 3,098.64.

Hong Kong's Hang Seng index rose 0.97 percent to 18,130.74. China Evergrande Group shares plummeted almost 79 percent as trading resumed following a 17-month suspension.

According to its 2023 interim report, the property developer's net loss for the six-month period stood at $5.4 billion.

Japanese shares rallied, underpinned in part by the persistent weakness of the yen. The yen hovered close to its lowest in over nine months after Bank of Japan Governor cited inflation concerns to support ultra-easy monetary policy.

The Nikkei average jumped 1.73 percent to 32,169.99 while the broader Topix index closed 1.47 percent higher at 2,299.81.

Air-conditioning maker Daikin Industries topped the gainers list to rally 4.2 percent while Fast Retailing and Toyota Motor both rose about 2 percent.

Tourism-related stocks underperformed amid lingering worries about China's ban on Japanese seafood.

Seoul stocks ended higher after comments from Powell suggested that the Fed would likely leave interest rates unchanged in September.

The Kospi average gained 0.96 percent to finish at 2,543.41. Korea Electric Power Corp, LG Energy Solution, Amorepacific and POSCO Holdings gained 1-3 percent.

Australian markets rose, with retailers surging after data showed retail sales rose more than expected in July despite higher borrowing costs.

The benchmark S&P/ASX 200 rose 0.63 percent to 7,159.80 while the broader All Ordinaries index closed up 0.45 percent at 7,365.90.

Tabcorp Holdings shares jumped 5 percent, while Harvey Norman, Flight Centre and Wesfarmers all rose about 2 percent. Across the Tasman, New Zealand's benchmark S&P NZX-50 index finished marginally higher at 11,479.01.

U.S. stocks finished Friday's session on an upbeat note after Fed Chair Jerome Powell expressed confidence in continued economic growth and reiterated the central bank's commitment to pull inflation back to the 2 percent target.

Comments from other Fed officials also gave the market confidence that the Fed is nearing the end of its rate hiking cycle.

The Dow and the S&P 500 both rose about 0.7 percent while the tech-heavy Nasdaq Composite climbed 0.9 percent.