Asian Stock Market: Trades higher, follows Wall Street record high gains
- Asian stocks began the new trading week on a higher note.
- Investors remained optimistic as US indices chalked fresh record highs on Friday.
- The policy shift in China has cooled down the anxiety of the global economic recovery slowdown.
Asia-Pacific indices remain optimistic on Monday following the stellar gains on Wall Street. US markets ended with a gain of over 1% in the previous week.
MSCI’s broadest index of Asia-pacific shares outside Japan gained 0.9% on Monday.
The Shanghai Composite Index rose 1.1% to a two-week high following the Public Bank of China ( PBoC) decision to cut the reserve requirement ratios (RRR) for all banks by 50 basis points on Friday. The step was taken to save smaller firms from bearing the brunt of a recent surge in raw material prices.
Japan’s Nikkei zoomed 2.3%, and South Korea’s Kospi gained 0.9%.
The ASX 200 rose 0.9% following a jump in oil prices, which are expected to benefit energy stocks.
The rising coronavirus cases in the region keep investors' nerves in check, which added to the attractiveness of the US dollar.
Gold gains on risk-aversion, as of writing it was trading at $1,803 as compared to its June low of $1,749.
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
