Asian Shares Rise On Fed Rate Cut Hopes; Solid China Data

(RTTNews) - Asian stocks rose broadly on Monday as in-line U.S. inflation data reinforced Fed rate cut hopes and a rebound in Chinese industrial profits suggested the world's second-largest economy is stabilizing amid robust policy measures.

China's Shanghai Composite index jumped 0.90 percent to 3,862.53 as data showed industrial profits in China returned to growth in August, rising an annual 20.4 percent after a 1.5 percent decline in July.

Hong Kong's Hang Seng index surged 1.89 percent to 26,622.88 ahead of China factory activity data due on Tuesday and the upcoming eight-day Golden Week holiday in China. Japanese markets bucked the regional trend to close lower as numerous stocks went ex-dividend and investors awaited cues from a quarterly business sentiment survey by the Bank of Japan due Wednesday.

The Nikkei average fell 0.69 percent to 45,043.75 while the broader Topix index settled 1.74 percent lower at 3,131.57.

Seoul stocks rallied after Wall Street broke its three-say losing streak on revived hopes for another Federal Reserve interest-rate cut. The Kospi average jumped 1.33 percent to 3,431.21 after a steep drop in the previous session.

Tech shares were among the biggest winners, with Samsung Electronics and SK Hynix rising 1.1 percent and 3.7 percent, respectively.

Australian markets hit a two-week high, with banks surging ahead of the Reserve Bank's interest rate decision on Tuesday. Gold miners also posted strong gains as bullion prices surged to another record high.

The benchmark S&P/ASX 200 rose 0.85 percent to 8,862.80 while the broader All Ordinaries index ended up 0.76 percent at 9,148.50.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up by 0.16 percent to 13,132.56.

The dollar was weak in Asian trading while gold surged more than 1 percent to hit a new record high above $3,800 per ounce as investors eyed a looming U.S. government shutdown.

Oil prices fell over 1 percent amid speculation that OPEC+ will hike production again in November. The restart of a pipeline from Iraq also exacerbated concerns about a worldwide glut.

U.S. stocks rebounded on Friday after falling for three straight sessions. The Treasury yield curve marginally steepened as August's personal consumption expenditures price index, the Federal Reserve's preferred inflation measure, showed that core inflation rose at a 2.9 percent seasonally adjusted annual rate in August, unchanged from July and matching estimates.

The Dow climbed 0.7 percent, the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite added 0.4 percent.