Chinese firms listed in Hong Kong led gains in Asian markets Monday on expectations Beijing will take steps to accelerate growth and the U.S. Federal Reserve will hold interest rates steady for longer.
The Nikkei 225 index gained 280.36 points, or 1.6%, to 18,005.49, after the Nikkei Japan Services purchasing managers’ index for September cooled to 51.4, down from 53.7 in August, which was the highest in almost two years. A reading above the 50-level indicates expansion, and below that indicates contraction.
The Hang Seng index in Hong Kong leaped 348.41 points, or 1.6%, to 21,854.50, led by Macau casinos, energy stocks and Chinese financial firms. Stock markets in mainland China remain closed for a holiday until Thursday.
The Hang Seng China Enterprises Index, a gauge of Chinese companies with listings in Hong Kong, rose 3.8%.
Hong Kong-listed shares of miner Glencore PLC, continuing a recent pattern of volatile trading as management seeks to deflect worries about the group’s finances amid falling commodity prices. A London-based spokesman declined to comment on media reports that the company is potentially selling its agricultural business.
Glencore "confirms that it is not aware of any reasons for these price and volume movements or of any information which must be announced to avoid a false market in the Company’s securities or of any inside information that needs to be disclosed," the company said in a statement to the Stock Exchange of Hong Kong at the exchange’s request. Glencore’s shares gained 18% in Hong Kong and opened up 15% in London.
Markets in the region are awaiting news of an agreement on the Trans-Pacific Partnership, a trade pact between the U.S. and 11 other countries being negotiated in Atlanta.
Data from Japan’s Ministry of Health, Labor and Welfare showed total cash earnings rising at a rate of 0.5% in August, the second straight month of increases.
Given signs of weakness in the Japanese economy, expectations are increasing for the Bank of Japan to ease further this month. The BOJ policy committee will have a two-day meeting on Tuesday and Wednesday and another session on Oct. 30.
The Japanese yen weakened against the dollar after the data and last traded at ¥120.13.
Australian stocks gained amid relatively light volumes given the Labour Day holiday.
Resources stocks recovered after a jump in commodity prices on Friday. The basket of mining shares climbed 3.5%, with heavily weighted BHP Billiton Ltd. gaining 4%, while the energy subindex rose 2.9%.
In other markets
In Korea, the Kospi index regained 8.57 points, or 0.4%, to 1,978.25
In Taiwan, the Taiex Index added 47.33 points, or 0.6%, to 8,352.36
In Singapore, the Straits Times Index recovered 58.1 points, or 2.1%, to 2,851.25
The NZX 50 tacked on 37.03 points, or 0.7%, to 5,630.54
The ASX 200 Index hiked 98.52 points, or 2%, to 5,150.54
