Investing.com - Asian stocks traded higher on Monday as investors snapped up equities on expectations that the Federal Reserve's plans to stimulate the U.S. economy via monetary easing measures will send stocks gaining worldwide.
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.27%, Australia's S&P/ASX200 was up 0.29%, while Japanese markets were closed on holiday.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as quantitative easing.
The Fed also said it would continue with its Operation Twist program that sees the U.S. central bank selling short-term Treasury holdings in the market while simultaneously buying longer-term instruments with the aim of keeping interest rates low.
The Fed also said conditions meriting low interest rates will likely last through mid-2015.
Monetary stimulus measures such as quantitative easing function by pumping liquidity into the financial system in a way that lowers interest rates across the economy, making stocks an attractive investment.
Much of that liquidity makes its way to other stock markets around the world, and hopes that riskier assets will rise brought in the buyers on Monday.
In Hong Kong, top gainers included HKEx, up 3.09%, CNOOC, up 2.81%, and SHK Properties, up 1.82%.
In Australia, top gainers included Mirabela Nickel, up 9.09%, Iluka Resources, up 7.09%, and Leighton Holdings, up 5.59%.
European stock futures indicated a lower opening.
France's CAC 40 futures pointed to a loss of 0.50%, while Germany's DAX 30 futures pointed to a loss of 0.26%. Meanwhile in the U.K., FTSE 100 futures indicated a loss of 0.35%.
Dow Jones Industrial Average futures were down 0.29% while the S&P 500 futures were down 0.28%.
Markets are looking ahead towards Wednesday, when the Bank of Japan announces its latest decisions on interest rates and monetary policy.
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.27%, Australia's S&P/ASX200 was up 0.29%, while Japanese markets were closed on holiday.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as quantitative easing.
The Fed also said it would continue with its Operation Twist program that sees the U.S. central bank selling short-term Treasury holdings in the market while simultaneously buying longer-term instruments with the aim of keeping interest rates low.
The Fed also said conditions meriting low interest rates will likely last through mid-2015.
Monetary stimulus measures such as quantitative easing function by pumping liquidity into the financial system in a way that lowers interest rates across the economy, making stocks an attractive investment.
Much of that liquidity makes its way to other stock markets around the world, and hopes that riskier assets will rise brought in the buyers on Monday.
In Hong Kong, top gainers included HKEx, up 3.09%, CNOOC, up 2.81%, and SHK Properties, up 1.82%.
In Australia, top gainers included Mirabela Nickel, up 9.09%, Iluka Resources, up 7.09%, and Leighton Holdings, up 5.59%.
European stock futures indicated a lower opening.
France's CAC 40 futures pointed to a loss of 0.50%, while Germany's DAX 30 futures pointed to a loss of 0.26%. Meanwhile in the U.K., FTSE 100 futures indicated a loss of 0.35%.
Dow Jones Industrial Average futures were down 0.29% while the S&P 500 futures were down 0.28%.
Markets are looking ahead towards Wednesday, when the Bank of Japan announces its latest decisions on interest rates and monetary policy.