Asian stocks start the week on a high note

Hong Kong’s Hang Seng Index (HSI) climbed 1.7%. Japan’s Nikkei 225 (N225) rose 0.5%. China’s Shanghai Composite Index (SHCOMP) added 0.6%.
Korea’s Kospi (KOSPI) also rose 0.5%. Australia’s S&P/ASX 200 gained 0.9%.
Analysts pointed to several developments that likely drove optimism, including an announcement from the People’s Bank of China that was meant to prop up that country’s economy. The central bank introduced a plan intended to lower borrowing costs for companies.
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The move will help establish a more market-driven interest rate system, the central bank said in its statement.
Investors might also be encouraged by the potential for improvement in US-China trade relations. US President Donald Trump said over the weekend that Apple CEO Tim Cook made a “good case” about the effects tariffs were having on the tech company’s business.
“This is significant for markets,” wrote Jingyi Pan, a market strategist for IG Group, in a research note. She pointed out that Apple is a “favorite” among big US tech stocks that would be hit hard by the latest tariffs that Trump proposed on China.
Here are some other big moves at 10:30 a.m. Hong Kong time:
  • Chinese stocks with ties to Shenzhen rallied in Hong Kong and on the mainland. The Chinese government on Sunday announced a plan to transform Shenzhen, which neighbors Hong Kong, into a global businesses hub.
  • Cathay Pacific Group (CPCAY)reversed early gains and fell 0.9% in early trading in Hong Kong. The airline carrier announced late Friday it had accepted the resignation of CEO Rupert Hogg and Chief Customer and Commercial Officer Paul Loo.
  • Japan’s exports fell 1.6% in July from a year prior, which was better than what analysts anticipated. Imports dipped 1.2% in July, also beating expectations.
  • Stocks in Asia took positive clues from Wall Street. The Dow (INDU)rose about 307 points, or 1.3% last Friday. The S&P 500 (SPX)and Nasdaq (COMP)gained 1.4% and 1.7% respectively.

Source : Cnn