Investing.com — Most rallied on Monday as technology stocks tracked big gains in their Wall Street peers while Chinese markets rose after the government further eased some restrictions on the real estate market. Asian stocks rose.
Regional markets have overcome concerns about a long-term rise in US interest rates following solid inflation data released last week. But he said he expected concerns to grow as this week's event approaches.
Tech companies were the day's best performers, following strong trading on Wall Street on Friday following explosive gains for Microsoft Corp. (NASDAQ:) and Alphabet Inc. (NASDAQ:). US stock index futures rose in Asian trading on Monday.
The strength in tech stocks is also helping the market look past data showing the persistence of U.S. inflation, with expectations for a more hawkish signal from the Federal Reserve later this week. The outlook is growing.
Expectations for the meeting are expected to limit gains in Asian markets.
Chinese stocks rise due to real estate excitement, PMI expected
China's index and index rose 1.3% and 0.8%, respectively, outperforming most of the region's indexes.
Real estate stocks were the main driver of the rally after the Chinese government announced measures to further ease restrictions on home purchases in major cities.
The move is aimed at boosting the real estate market, which has faced three years of recession and is a key pressure on China's economy.
The rally in Chinese stocks also came days before key April data expected to provide further clues about the country's economic recovery.
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This week has seen a flurry of financial results for major Chinese companies, particularly China's largest state-owned banks and oil and gas companies.
In Asia, Hong Kong was the best performer, rising 1.7% with gains in technology and real estate stocks. The index is currently trading 20% above its five-year low reached in late January and was close to entering bull market territory.
Expectations for AI drive technology
Other Asian tech stocks also rose. South Korea rose 0.8% as large semiconductor manufacturing stocks rose.
Taiwan's index also rose more than 1%, due in part to gains in semiconductor manufacturers.
Tech sentiment was boosted mainly by better-than-expected earnings from U.S. tech giants Microsoft and Alphabet, sparking a rebound on Wall Street on Friday.
Strong results from both companies raised hopes that rising demand for artificial intelligence will continue to create value for tech stocks.
Other Asian stocks also rose on Monday. Broad-based gains pushed the Australian index up 0.8%, while India index futures edged slightly positive. Nifty is expected to undergo some fluctuations this week ahead of the 2024 general elections.
Japanese markets were closed for the holiday.
