As interest rate cuts become concentrated again, Asian stock markets rise, and those in China soar. investing.com

Investing.com– Most Asian stocks rose on Monday, tracking strength on Wall Street as weak payrolls data revived expectations of an interest rate cut, while Chinese markets returned from a long weekend with notable gains.

Nonetheless, market closures in Japan and South Korea limited regional trading volumes.

U.S. stock index futures were slightly higher in Asian trade after a strong session on Friday, and markets now await speeches from several key Federal Reserve officials this week for more clues on interest rates.

Most Asian markets suffered heavy losses through April.

Chinese stock market rebounds, hitting highest level in 7 months

China and the index rose 1.6% and 1.1% respectively, keeping up with gains in peer indices after the long weekend. Both indices remained at their highest levels since early October after a remarkable recovery over the past two months.

The market was also reacting to news last week that Beijing had eased strict homeownership restrictions in its real estate market, a move expected to boost the beleaguered sector.

Private Purchasing Managers’ Index data shows the continued resilience of China, which has been a key driver of business activity over the past year.

Chinese stocks have made a strong recovery from a five-year low hit in February amid some optimism that the country’s economic growth will recover. China has eased restrictions on several industries to boost growth while maintaining significant monetary stimulus.

The rise in mainland stocks helped fuel some gains in Hong Kong indexes, which had been facing resistance after entering a bull market from February lows.

Australian stocks rise as RBA focuses

Australia rose 0.6%, tracking gains in the United States and China.

However, sentiment towards Australia remained uneasy before Tuesday’s meeting.

While the RBA is expected to keep interest rates on hold, analysts have warned of a more hawkish outlook from the bank, especially after first quarter inflation data came in much higher than expected.

The hawkish signals are likely to unsettle Australian stocks.

Broader Asian markets were quiet due to market closures.

Futures for Indian indices opened on a positive note, expected to bounce back from Friday’s losses, tracking gains in Asian indices.