Investing.com– Most Asian stocks rose sharply on Monday, with the tech sector undermining gains as the focus centered on further hints of interest rate cuts at an upcoming Federal Reserve meeting.
But Chinese markets continued to lag their regional peers as sentiment toward the country showed little sign of improving ahead of more key economic metrics this week.
Regional stocks took positive notes from a strong finish on Wall Street on Friday, with signs of easing inflation prompting bets that the central bank will eventually cut interest rates this year. US stock index futures also rose on the sentiment in Asian trade.
The central bank is set to conclude its two-day meeting on Wednesday. But any signals about when it plans to cut rates will be closely watched, especially amid encouraging comments from central bank officials.
Asian tech rebound extends
Tech-heavy Asian stocks continued to lead amid an extended rebound in tech stocks. Japan’s index rose 2.2%, while South Korea and Hong Kong rose 1% each.
Profit-taking over the past two weeks has seen tech stocks turn a bargain, while expectations of interest rate cuts have seen investors flock to more economically important sectors.
But investors have seen a return to the sector, especially ahead of several key earnings this week. US tech giants Microsoft Corp (NASDAQ: ), Apple Inc (NASDAQ: ) and Meta Platforms Inc (NASDAQ: ) are set to report second-quarter earnings in the coming days, providing more hints about industrial and artificial intelligence.
Chinese stocks lagged amid some positive signals
China’s and indices fell 0.4% and 0.1% respectively, remaining near five-month lows, and saw some relief from negative sentiment towards China.
Fears of a slowdown in China’s economic recovery—following a series of weak readings through July—triggered an extended selloff in Chinese markets.
US political uncertainty also weighed on Chinese markets, particularly as investors remain uncertain about how the next US administration will treat Beijing.
For more notes on business activity, focus this week on country data for July.
Broader Asian markets rose. Australia added 0.8%, while Japan’s index added 1.9%.
India’s index pointed to a positive opening, set to extend the index’s gains after last week’s highs.
