Investing.com-- Asian stocks rebounded at the start of the month tracking last week’s strong finish on Wall Street, with Chinese shares rising on strong factory activity data.
Investors cautiously awaited U.S. President Donald Trump’s trade tariff decision due this week, but uncertainty over the tariff rates signaled a possibility of softer measures.
Major U.S. stock indexes ended higher on Friday last week, as the key PCE inflation came in largely in-line with expectations.
Trump tariff decision looms; Asia stocks jump after steep losses
Asian stocks had slumped in the previous trading session, with tech stocks sinking after a Nvidia-led sell-off on Wall Street.
Investor mood had also been sour after Trump announced 10% additional tariffs on China and reaffirmed his tariff timings for 25% levies on Mexico and Canada.
However, on Sunday, U.S. Commerce Secretary Howard Lutnick said that Trump will determine the exact tariff levels on Tuesday, indicating there was some leeway for less aggressive levies.
This provided some respite to the Asian stocks, most of which experienced monthly declines in Feb.
Japan’s Nikkei 225 rose 1.4% on Monday, after plunging more than 3% in the last trading session. TOPIX rose 1.2%.
Hong Kong’s Hang Seng index jumped 1.8% after losing 3.2% on Friday.
Indonesia’s Jakarta Stock Exchange Composite Index jumped 2.2% on Monday, while Philippines’ PSEi Composite rose 1.1%.
Australia's S&P/ASX 200 index gained 0.6%.
Markets in South Korea were closed for a public holiday.
Futures for Nifty 50 indicated a slight rise at open.
China stocks up after strong PMI data
China’s Shanghai Composite rose 0.7%, while the Shanghai Shenzhen CSI 300 index gained 0.8%.
Data over the weekend showed that Chinese manufacturing activity grew more than expected in February as local businesses still benefited from last year’s stimulus measures.
A private survey showed the same on Monday, with the Caixin manufacturing PMI hitting a 3-month high in February.
China's key ‘Two Sessions’ meetings awaited
China’s annual Two Sessions meetings, set to begin this week, will be closely watched by investors for signals on the country’s economic direction and potential stimulus measures.
The gatherings—comprising the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC)—are among the most important political events of the year, shaping key policy decisions across economic, social, and legislative fronts.
Amid sluggish economic growth, weak consumer confidence, and an ongoing property sector downturn, markets are expecting Chinese authorities to unveil measures aimed at stabilizing the economy.
“We expect China to stick with its “around 5.0%” GDP goal, the same as 2024, while providing much-anticipated details on the direction of fiscal and monetary policies,” ING analysts said in a recent note.