Chinese stocks posted solid gains to lead most Asian markets higher Monday, reflecting relief after Beijing belied fears of an interest-rate increase over the weekend.
Shanghai’s CSI 300 Index moved forward 99.08 points, or 3.1%, to 3,261.06, after the People’s Bank of China on Friday raised banks’ reserve requirement ratio by half a percentage point.
The Chinese government avoided harsher measures like an interest-rate increase, but data released Saturday showed inflation in November rose 5.1% on the year — the fastest rise in two years.
At the end of the three-day Central Economic Work Conference, Chinese policy makers separately articulated their economic priorities for next year, saying they would ensure balanced economic development and focus on stabilizing price levels.
Pacing the gains in Shanghai, Jiangxi Copper Co. and China Oilfield Services jumped by the day’s 10% limit, recovering some recent sharp losses.
SAIC Motor Corp. rose 8.8%, Yanzhou Coal Mining Co. climbed 5.9% and Dongfang Electric Corp. advanced 5.4%.
Elsewhere, in Japan, the Nikkei 225 Index charged 81.94 points, or 0.8%, to 10,293.90
Hong Kong’s Hang Seng Index surged 154.70 points, or 0.7%, to 23,317.60
In Tokyo, shares of Nippon Steel Corp. rose 2.7% and JFE Holdings added 3.3% after J.P. Morgan upgraded both stocks to overweight from neutral, citing a cyclical market recovery.
In Hong Kong, refiner China Petroleum & Chemical Corp., or Sinopec rose 2.7%, while property developer Sino Land Co. climbed 2.3%.
In Australia, banks lifted shares after the government announced regulatory reforms over the weekend.
In Sydney, banks led market gains after the Labour government said it will empower a key regulator to prosecute price-signaling collusion on home lending rates, but it stopped short of offering any punitive measures that might directly harm big banks.
Westpac Banking Group and National Australia Bank advanced 1.5% each.
In foreign-exchange markets, the U.S. dollar advanced against major currencies ahead of the Federal Reserve’s policy-setting meeting this week.
The dollar rose to 84.27 yen from ¥83.90 in late New York trade Friday, while the euro was changing hands for $1.3199 U.S. from $1.3229 U.S., and for ¥111.23 from ¥110.99.
In other markets
Singapore’s Straits Times Index let go of 3.10 points, or 0.1%, to 3,182.32
Korea’s Kospi Index added 10.45 points, or 0.5%, to 1,996.59
Taiwan’s Taiex Index prospered 17.78 points, or 0.2%, to 8,736.59
New Zealand’s NZX 50 Index garnered 18.37 points, or 0.6%, to 3,291.29
Australia’s S&P/ASX 200 Index was 11.20 points, or 0.2%, to the good at 4,757.10
