Mount Fuji in Japan is seen over the Tokyo skyline on January 1, 2011.
Kazuhiro Nogi Afp | Getty Images
Asia-Pacific markets rose on Monday, with Japan Nikkei 225 major gains in the region after a key US inflation report late on Friday raised hopes for a rate cut.
The Nikkei rose 2.02%, while the broad-based Topix rose 1.52%. If the Nikkei can hold on to its gains, it will snap the index’s eight-day losing streak.
The June US personal consumption price index rose 0.1% month-on-month, and 2.5% compared to the same period a year ago, in line with the forecasts of economists polled by Dow Jones.
In Asia, the highlight of the week will be the Bank of Japan’s monetary policy meeting from July 30. A Reuters poll of economists expected the central bank to raise rates by 10 basis points to 0.1%.
A note from ING said the bank would raise rates by 15 basis points and reduce its bond-buying program simultaneously.
“We believe that the economy is back on the path of recovery after an unexpected contraction in the first quarter of 2024, and solid wage growth for May if the central bank gives more confidence,” the analysts wrote.
Other key inflation data from the region includes China’s July PMI data, while Australia will release its latest set of inflation data ahead of the central bank’s August 6 monetary policy meeting.
South Korea Kospi was 0.8% more, while the small-cap Kosdaq rose 0.48%.
Australia’s S&P/ASX 200 rose 0.84%.
Hong Kong Hang Seng Index futures were at 17,126, lower than HSI’s last close of 17,021.31.
In the US, the Dow Jones Industrial Average rallied 1.64%, while the S&P 500 rose 1.11% and the Nasdaq Composite gained 1.03%.
The move came from a combination of oversold sentiment, a stronger-than-expected GDP report Thursday and the view that the Federal Reserve will begin cutting rates, CFRA Research’s Sam Stovall said.
— CNBC’s Samantha Subin and Pia Singh contributed to this report.
