Asian Shares Mostly Higher As Bond Yields Ease

(RTTNews) - Asian stocks rose broadly on Monday despite China announcing its lowest growth target in decades.

A weaker dollar and lower Treasury yields helped underpin sentiment ahead of the release of U.S. jobs data, Fed Chair Jerome Powell's testimony and upcoming central dank decisions in Japan and Australia.

Chinese stocks ended a tad lower as the country set a modest target for economic growth this year of around 5 percent, down from last year's target of 5.5 percent. Chinese inflation and trade data for February due out later in the week could shed further light on Asia's largest economy.

China's Shanghai Composite index slipped 0.19 percent to 3,322.03 while Hong Kong's Hang Seng index recovered from an early slide to close 0.17 percent higher at 20,603.19.

Japanese shares posted strong gains amid bets that the Bank of Japan (BOJ) will maintain its ultra-loose policy to support the fragile economy.

The Nikkei average jumped 1.11 percent to 28,237.78 ahead of the BOJ's policy decision due on Friday. The broader Topix index closed 0.84 percent higher at 2,036.49. Tech stocks led the surge, with Screen Holdings, Advantest and Tokyo Electron rising 1-3 percent.

Startup investor SoftBank Group advanced 2.7 percent on reports its subsidiary Arm is seeking to raise at least $8 billion from a U.S. listing.

Seoul stocks rallied as data showed consumer inflation in the country eased to below 5 percent for the first time in 10 months in February, bolstering the case for a pause in interest rate hikes by the Bank of Korea.

The Kospi average climbed 1.26 percent to 2,462.62, extending gains for a fourth day running on the back of gains in chips, batteries and tech shares.

Australian markets began the week on a positive note, with banks and tech stocks pacing the gainers ahead of Tuesday's RBA meeting. Mining and energy stocks were sold off on disappointment over China's downbeat growth forecasts.

The benchmark S&P/ASX 200 rose 0.62 percent to 7,328.60 while the broader All Ordinaries index ended 0.56 percent higher at 7,525.70.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index rose 0.37 percent to 11,912.48.

U.S. stocks rose sharply on Friday as the U.S. 10-year Treasury yield pulled back after jumping to a three-month closing high above 4.0 percent.

There wasn't much in the ISM services report to suggest the Fed needs to raise rates significantly higher than previously planned.

The Dow climbed 1.2 percent, the tech-heavy Nasdaq Composite jumped 2 percent and the S&P 500 added 1.6 percent.