Stocks in Asia rose on Monday as investors looked for a slew of reports on manufacturing activity in the region and as the market reacted positively to a rally on Wall Street over signs of moderating US inflation.
As of 9.39 A.M. Bangkok time, Japan’s Nikkei 225 gained 1.53%, and South Korea’s Kospi climbed 1.43%.
The S&P/ASX 200 in Australia gained 0.28% as traders awaited Tuesday’s rate announcement from the Reserve Bank of Australia. The cash rate is anticipated to be raised by 25 basis points, bringing it to 4.35%, according to Reuters’ survey of economists.
Hong Kong’s Hang Seng index added 1.22%. The Shanghai Composite in mainland China was 0.63% higher.
On Friday in the United States, the technology sector led the way for gains across all three major indexes. The Nasdaq Composite rose 1.45%, while the S&P 500 increased 1.23.0% and the Dow Jones Industrial Average added 0.80%.
Traders were encouraged by data showing that inflation in the United States is slowing, even if at the expense of growth. One of the Fed’s favorite measures of inflation, the PCE price index, increased by 0.1% in May. From a year ago, the indicator declined to 3.8%, marking the smallest annual increase in more than two years.
Later on today, China will publish its manufacturing PMI as measured by the Caixin survey. Despite official government readings reflecting a third consecutive month of loss, economists polled by Reuters anticipate to see a modest expansion.
Also, private factory activity surveys will be released for Japan, South Korea, Taiwan, and India, as well as for some ASEAN nations today.
