Asian Stocks Stay Range-Bound Amid Earnings Focus

Most Asian stocks remained within a tight range on Monday as attention turned to the upcoming earnings season, while Chinese markets experienced fluctuations after the People's Bank of China (PBOC) cut rates more than expected.

Wall Street Influences

Regional markets drew some positive sentiment from Wall Street, where U.S. stock indexes closed near record highs on Friday. Wall Street futures showed mild positivity during Asian trading hours.

A wave of major U.S. and Asian earnings reports are anticipated in the coming weeks, providing insights into corporate profits as global interest rates stay high amidst softer economic conditions.

Chinese Stocks Rise After PBOC Rate Cuts

China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both saw approximately 0.7% increases in volatile trading following a more substantial cut to the benchmark loan prime rate than the market had anticipated by the People's Bank of China.

This LPR cut is part of a broader range of stimulus measures from Beijing aimed at bolstering economic growth, which were largely expected by markets.

In recent weeks, Beijing has enacted its most aggressive stimulus measures yet, announcing both monetary and fiscal strategies to boost economic performance. Nevertheless, after an initial surge that brought Chinese stocks to their highest level in two years, the market retreated due to investor disappointment over the lack of specifics regarding the timing and scale of these new initiatives.

Meanwhile, Hong Kong's Hang Seng index fell by 0.2%, reflecting limited optimism among foreign investors regarding China's interest rate reduction.

Recent economic indicators have shown minimal improvement in Asia's largest economy.

Despite this, a positive outlook for additional stimulus in China propelled Australia’s ASX 200, which rose 0.6% due to its heavy trade links with China.

Earnings and Interest Rates in Focus

Broader Asian markets maintained a narrow range, with attention on the third-quarter earnings season and further insights into interest rates across major economies.

Japan's Nikkei 225 index rose by 0.3%, while the TOPIX index remained stable. Upcoming general elections in Japan later this month are expected to influence market trends, alongside a meeting of the Bank of Japan.

South Korea’s KOSPI index remained flat, while futures for India’s Nifty 50 suggested a mildly positive open, as the index aimed to surpass the 25,000-point mark. Major corporate earnings are also due in India this week, with key players including UltraTech Cement Ltd, Hindustan Unilever Ltd, and ITC Ltd.