(Bloomberg) — Asian stocks rose on expectations that China may deliver more stimulus to revive the world’s second-largest economy after the US kicked off its easing cycle. Gold touched a record high.
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The MSCI Asia Pacific Index climbed as shares in China, Hong Kong and South Korea advanced. US equity futures also gained. China announced plans for a rare briefing on the economy Tuesday by three top financial regulators just as it cut one of its short-term policy rates, fueling speculation that fresh stimulus is on the way.
Traders are looking for another round of measures to resuscitate China’s growth and energize the global economy. While a raft of Chinese data on Friday added to the dour picture, US statistics due later this week are likely to provide investors fresh insight about the pace and scope of further Federal Reserve easing.
“Having a bit more policy support definitely does help” Chinese share markets, said Ken Wong, an Asian equity portfolio specialist at Eastspring Investments Hong Kong Ltd. “Ultimately, getting the consumer to spend and building up that confidence is going to be key in China.”
The yen dropped after Bank of Japan Governor Kazuo Ueda indicated Friday that authorities aren’t in a hurry to raise interest rates again. Cash trading of US Treasuries was closed in Asia due to a holiday in Japan.
A gauge of the dollar was little changed while Australian bonds fell ahead of the central bank likely extending a policy pause on Tuesday as housing costs underpin sticky inflation.
Elsewhere this week, the central banks of Sweden and Switzerland are scheduled to hold monetary policy decisions while a swath of Fed speakers — including regional presidents Raphael Bostic and Austan Goolsbee — are due to speak. The Fed’s preferred price metric and data on US personal spending and income are also set to be released.
Fed Governor Christopher Waller said on Friday he’d likely back quarter-point cuts at each of the next two central bank policy meetings in November and December.
“What markets will probably be…
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