Investing.com — Most Asian stocks rose on Monday as markets welcomed China's economic stimulus plan, but tech weights also eased as investors bought into the sector ahead of this week's major earnings results. Rose.
Most regional markets maintained their gains from last week as some weaker U.S. inflation indicators boosted expectations that the Federal Reserve would cut interest rates this year. Wall Street hit record highs last week, and U.S. stock index futures rose further in Asian trading on Monday.
This week focuses on speeches from a number of Fed officials, as well as further clues from the Fed's meeting in late April.
Chinese stocks reach new highs in 2024 as market considers stimulus measures
China's index and index rose 0.2% and 0.3%, respectively, on Monday, extending gains from last week. Both indexes hit their highest levels in seven months and eight months.
Last week, the Chinese government rolled out a series of economic support measures, particularly for the real estate market, to boost the sluggish economic recovery.
China has eased restrictions on home purchases in several major cities and reportedly directed state governments to start purchasing homes.
China also maintained its benchmark at an all-time low on Monday.
However, gains in the Chinese market were limited, especially after April's moderate economic data. The country's retail spending and capital investment remain weak and will likely require further stimulus from the Chinese government.
Concerns about a renewed trade war with the United States also weighed on Beijing after the Chinese government banned some American companies from importing and exporting activities related to China. The move is seen as potential retaliation for recent U.S. tariff hikes on key Chinese industries.
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Technological advances that are driving Nvidia's bottom line
Tech-heavy indexes performed best on the day. Japan's index rose 1.3%, while South Korea and Hong Kong's index rose 0.6% and 0.4%, respectively.
Investors bought into the sector ahead of artificial intelligence powerhouse Nvidia Corporation's (NASDAQ:) quarterly results to be released this Wednesday, looking for further clues about whether demand in the growing industry remains strong. .
Nvidia is considered a bellwether in the technology industry, especially given its increased exposure to the AI industry over the past year. The company was effectively leading an AI-driven valuation surge across the technology sector.
Tech stocks also sustained modest gains from last week as optimism about lower U.S. interest rates pushed down U.S. Treasury yields.
The broader Asian market also made progress. Australia rose 0.6% on strength in mining stocks and higher prices for other metals.
Thailand rose 0.2% as gross domestic product data showed economic growth in the first quarter was much stronger than expected.
