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Home / Business / Asian stocks rise slightly as investors wait for central bank moves – the Asian market last

Asian stocks rise slightly as investors wait for central bank moves – the Asian market last



Hong Kong's Hang Seng Index ( HSI ) moved up 0.1%. China's Shanghai Composite Index ( SHCOMP ) rose 0.4%. Japan's Nikkei ( N225 ) received 0.4%. South Korea Kospi ( KOSPI ) advanced 0.7%.
Monday marked the first day of trading for the region since the People's Bank of China on Friday said it would reduce the amount of cash banks need to stay in reserve, a move that could free 900 billion yuan ($ 126 billion) for long-term lending. The central bank has indicated that it can take several steps to stimulate the economy.

China's economy still shows signs of weakness. Exports contracted unexpectedly by 1

% last month, according to data released over the weekend. Analysts, as Reuters asked, expected these numbers to rise.

Exports in August to the US fell 16% compared to a year ago. The country has been locked in a trade war with the United States.

Elsewhere in the region, Japan revealed that the economy was growing slower than projected in the second quarter. The country revised GDP growth to 1.3% for the quarter, compared to the 1.8% originally projected, according to data released by the Cabinet Office.
Japan's central bank meets next week. Japanese interest rates are already very low, and investors are looking to see if the central bank will ease its monetary policy even further in the future.

"Traders are … leaning on the pillars for the support of monetary policy makers," wrote Stephen Innes, an Asia Pacific market strategist at AxiTrader, in a report on Monday. He added that expectations are high for central bankers to take steps to support their finances.

Investors are also looking forward to the European Central Bank's political decision on Thursday, Innes wrote.

Meanwhile, the Federal Reserve is holding the September meeting next week. Chairman Jerome Powell on Friday reiterated a promise to do whatever it takes to keep the US economy growing – comments that are generally seen as a signal that policy makers could cut interest rates again.

Separately, China's foreign exchange reserves – currently more than $ 3.1 trillion – rose to $ 3.5 billion in August, an unexpected jump. Analysts polled by Reuters predicted the amount would fall.

The Global Times, a Chinese state-run media agency, said on Sunday it could give the country "more leeway" in its ongoing trade war with the United States.

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