China, Hong Kong stocks climb, leading gains in Asia

Asia markets saw a boost on Monday, with China and Hong Kong stocks leading the way, following Federal Reserve Chair Jerome Powell’s indication that the central bank may start easing monetary policy next month during his highly anticipated annual speech in Jackson Hole, Wyoming.

The CSI 300 in Mainland China continued its upward trend for the fourth consecutive session, rising by 2.08% to close at 4,469.22 after reaching a 37-month high earlier in the day.

“There is a growing belief that maturing time deposits could move into equities and maintain the momentum, especially as deposit rates have significantly decreased,” analysts at Goldman Sachs mentioned in a note on Sunday. “Some also anticipate potential inflows if Fed rate cuts prompt a shift of capital from the US to China, with the bond-to-equity rotation being a key factor driving recent gains in the equity market.”

Chinese property stocks listed in Hong Kong surged after Shanghai relaxed homebuying regulations for eligible families. China Vanke trimmed its earlier gains to 9.86% despite reporting a wider net loss of 12 billion yuan ($1.67 billion) for the first half, compared to 9.9 billion yuan in the previous year. Longfor Group rose by 5.22% and New World Development climbed by 5.1%.

The Hang Seng Index in Hong Kong jumped by 1.94% to reach 25,829.91, coming close to a four-year high. Zijin Mining Group led the gains with a 6.38% increase, while NetEase surged by 6.04%.

The tech sector played a significant role in the HSI’s rise, with the Hang Seng Tech index climbing by 3.14% to 5,825.09. Notable movements were observed in Nio, which gained 15.17%, and semiconductor manufacturer ASMPT, which added 7.6%.

Taiwan’s Taiex index also saw strong gains, rising by 2.16% to 24,277.38.

In South Korea, the Kospi index grew by 1.3% to close at 3,209.86, while the Kosdaq for small-cap stocks advanced by 1.98% to 798.02.

Japan’s Nikkei 225 benchmark increased by 0.41% to end at 42,807.82, while the broader Topix index edged up by 0.15% to 3,105.49.

Australia’s S&P/ASX 200 benchmark finished flat at 8,972.40 after surpassing the 9,000 mark earlier in the trading session.

In India, the Nifty 50 benchmark rose by 0.53%, and the BSE Sensex index climbed by 0.51% as of 1:50 p.m. Indian Standard Time (4:20 a.m. ET).

Elsewhere in the Asia-Pacific region, Singapore reported an inflation rate of 0.6% in July, lower than the 0.7% predicted by economists surveyed by Reuters and down from 0.8% in June.

U.S. equity futures traded near the flatline as investors awaited the earnings report of artificial intelligence favorite Nvidia.

On the previous Friday, the Dow surged by 846.24 points, or 1.89%, reaching a record high of 45,631.74.

Meanwhile, the S&P 500 rose by 1.52% to 6,466.91, coming within three points of its all-time high. The Nasdaq Composite, heavy on tech stocks, gained 1.88%, closing at 21,496.53.

— Contribution to this report by CNBC’s Tanaya Macheel.