Asian stocks reach two-year high as China announces plans to boost property market

Asian shares surged to two-year highs on Monday, driven by China’s bold moves to tackle its property crisis and anticipation of global rate cuts. The dollar stabilized after a recent decline, while Brent crude futures hit a one-week high of $84.14 a barrel.

Japan’s Nikkei climbed 0.9% in early trading, with Hang Seng futures indicating gains and MSCI’s Asia-Pacific index reaching a two-year peak. Gold remained near a record high at $2,423 an ounce.

Following last week’s record highs in global stocks, investors are now focused on upcoming policy speeches, meeting minutes, and central bank decisions. BNY Mellon’s Bob Savage emphasized the importance of central bankers’ confidence and economic data in sustaining the market rally.

Federal Reserve Governor Michelle Bowman reiterated her readiness to raise rates if inflationary pressures persist. Meanwhile, European Central Bank board member Isabel Schnabel hinted at a potential rate cut in June but downplayed expectations for further cuts.

China’s recent measures to stabilize its property sector, including additional funding and eased mortgage rules, boosted the Hang Seng index and copper prices. In currency markets, the dollar held steady against major currencies, with the euro trading at $1.0873.

Looking ahead, the Reserve Bank of New Zealand is set to announce its interest rate decision, while meeting minutes from Australia’s central bank and the Federal Reserve are also on the agenda. S&P 500 futures rose 0.2% in early trading, with Bitcoin dipping slightly to $65,863.