Investing.com - Asian stocks were mostly higher in afternoon trade on Monday, as Chinese stocks extended gains and surged more than 4% after Chinese President Xi Jinping vowed “unwavering” support for the country’s private sector.
The Shanghai Composite and the Shenzhen Composite jumped 4.6% and 5.4% respectively by 1:28 AM ET (05:28 GMT).
Citing Xi’s letter to private entrepreneurs, state-owned Xinhua News Agency reported on Sunday that the President promised to support the development of private enterprises, as it is the Party Central Committee’s consistent policy. Xi also noted that “any words and practices that negate and weaken the private economy are wrong.”
However, some analysts voiced skepticism over the recent rally in mainland Chinese stocks.
"Eventually, at the end of the day, fundamentals will still rule," Vasu Menon, vice president of group wealth management at OCBC Bank told CNBC on Monday morning.
"You see a rebound today, but does it mean that the markets have turned a corner and you know, will hit higher? I'm not sure. I don't think so," Menon said.
Official data showed last week that the country’s third quarter GDP grew at the slowest pace since early 2009.
Separately, citing a policy adviser to the People’s Bank of China, Caixin reported on Monday that China's tax cuts next year could exceed the equivalent of 1% of gross domestic product (GDP).
China's GDP totaled 82.7 trillion yuan ($11.93 trillion) last year.
Hong Kong’s Hang Seng Index gained 2.3%. The shares of Standard Chartered (LON:STAN) PLC gained on Monday morning despite a report that the group plans to cut workers to reduce costs.
The Financial Times reported on Friday, citing sources, that the bank is eyeing a layoff to reduce costs as investors grew frustrated over its performance. The plan could come later this month when the bank posts its results for the third quarter.
The source also said that it plans layoffs in its Middle East and Africa division, which could lead to job cuts of up to 300 people. The bank was also said to impose a partial hiring freeze and restrictions on staff travel to reduce costs.
Elsewhere, Japan’s Nikkei 225 and South Korea’s KOSPI inched up 0.4% and 0.01% respectively.
Down under, Australia’s S&P/ASX 200 also dipped 0.1%.
Meanwhile, Saudi Arabia remained in focus as Foreign Minister Adel al-Jubeir
on Sunday called the killing of journalist Jamal Khashoggi a "huge and grave mistake," but added that Prince Mohammed was not aware of the incident and was not responsible for the killing.