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Asian shares inched higher on Monday as markets wagered the Federal Reserve was done raising U.S. interest rates, and on hopes the drip feed of policy stimulus from Beijing would be enough to stabilize the Chinese economy.
A holiday in the United States made for a slow start ahead of key readings on U.S. services and Chinese trade and inflation later in the week.
More policy action is also expected from Beijing, including relaxing restrictions on home buying.
There was relief that embattled property developer Country Garden won approval from its creditors to extend payments for an onshore private bond.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up another 0.1 percent, having bounced 2.3 percent last week. Japan’s Nikkei rose 0.2 percent, after rallying 3.4 percent last week.
The broader Topix jumped 3.7 percent last week to its highest in 33 years, helped by data showing companies made record profits in the June quarter.
Yet the Topix still only has a price to earnings ratio of 14, compared to 23 for the S&P 500 and 29.5 for the Nasdaq.
Investor sentiment on the tech sector will be tested this week by the initial public offering for chip giant Arm Holdings, which is aiming for a price in the range of $47 to $51 valuing the company between $50 billion and $54 billion.
