Asian stocks rebounded on Monday after a rally on Wall Street, with investors focusing on upcoming inflation data from the largest economies due this week. China’s Shanghai Composite index and the Shanghai Shenzhen CSI 300 index rose 1.6% and 1%, respectively, following the release of strong travel and consumer spending figures from the Golden Week holiday.
Hong Kong’s Hang Seng index also rose 0.8%, supported by gains in locally listed Chinese stocks. Investors are closely watching China’s trade and inflation data scheduled for release on Tuesday and Wednesday to assess the state of the country’s economic recovery.
Other Asian markets advanced, with South Korea’s KOSPI, India’s NSEI and BSESN indexes rising 0.8%, 0.7% and 0.5%, respectively, while Australia’s ASX 200 index rose 0.5%. In contrast, Japan’s Nikkei 225 index fell 0.8% due to the increased uncertainty surrounding how the Federal Reserve may act in the coming months following its recent interest rate hike and the strong U.S. labor data.
The focus is now on U.S. consumer price index inflation data due on Wednesday, which is expected to show a further easing of inflation in April, although it still remained well above the Fed’s 2% annual target. A Fed survey of U.S. loan conditions is also expected to provide more insight on a potential banking crisis in the country later on Monday.