Asian Stocks Remain Steady as China Prepares to Reopen: Market Overview

Asian equity markets are holding steady as traders eagerly anticipate the reopening of China after an extended holiday break. With Beijing’s supportive policy stance providing a boost to market sentiment, mainland markets are expected to see gains in the coming days.

Following a positive performance in the US markets last week, where the S&P 500 rose 1.3% on the back of softer-than-expected jobs data, Australian shares also edged higher. The optimism in global stocks was further fueled by a rally in US Treasuries, as concerns about stagflation or a recession eased with the release of the payrolls report.

In the oil market, prices rose after Israel closed the Kerem Shalom humanitarian crossing into Gaza in response to a rocket barrage by Hamas. Additionally, Saudi Arabia increased the price of crude sold to Asia in an effort to tighten the oil market.

Traders are keeping a close eye on central bank meetings scheduled for this week, with the Reserve Bank of Australia expected to take a hawkish stance following strong inflation data. Chinese economic activity data and inflation readings in key emerging markets are also on the agenda.

Key events this week include China’s Caixin services PMI, Eurozone S&P Global Services PMI, Australia’s rate decision, and earnings reports from UBS, Walt Disney, and BP. With a busy week ahead, market participants are gearing up for potential market-moving developments across various asset classes.