Equities in Asia rose Monday following a rally on Wall Street as investors embraced fresh signs that inflation is easing further. Chinese stock gauges led gains on expectations of more government stimulus.
Shares in Japan and Korea also rose, helping to push a regional index toward the highest closing level of the year. Gains for Chinese equities pushed the MSCI Emerging Markets Index as much as 1% higher, headed to levels not seen since June last year.
US equity futures fell in Asia amid a rally Friday that pushed the Nasdaq 100 nearly 2% higher.
The demand for risk assets comes after further easing in key US inflation gauges, signaling fresh optimism that a soft landing for the world’s biggest economy is within reach.
Federal Reserve Bank of Minneapolis President Neel Kashkari described the inflation outlook as “quite positive,” despite the likelihood of job losses and slower growth.
The Bank of Japan announced unscheduled bond-purchase operations to buy debt, seeking to contain a selloff after it said Friday it will allow yields to rise above a 0.5% cap. The yen swung to a loss against the dollar.
