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Most Asian stocks rose on Monday as investors awaited more cues on fiscal stimulus from a meeting of China’s top policymakers this week, although risk aversion ahead of the U.S. elections limited gains.

Regional Trading Volumes

Trading volumes were low due to a market holiday in Japan, with Nikkei 225 futures falling by 0.2%.

Asian markets were buoyed by a softer-than-expected U.S. nonfarm payrolls report on Friday, heightening expectations that a cooling labor market might lead to more interest rate cuts from the Federal Reserve.

U.S. stocks steadied in Asian trade, as attention turned to an upcoming Fed meeting this week.

Chinese Stocks Remain Upbeat as NPC Meeting Begins

China’s Shanghai Shenzhen CSI 300 rose by 0.5%, while the Shanghai Composite increased by 0.3%. Hong Kong’s Hang Seng index saw a gain of 0.7%.

The National People’s Congress’ Standing Committee began a four-day meeting on Monday, where it is expected to unveil more fiscal spending initiatives. Reports suggest that the body might approve an additional $1.4 trillion in new debt to stimulate growth amid ongoing deflation and a prolonged decline in the property market.

While optimism surrounding new measures initially sparked strong gains in Chinese stocks, doubts about the timing and scale of the stimulus led to a trimming of these gains.

Australia Stocks Rise, RBA in Focus

Australia’s ASX 200 added 0.3%, staying near recent record highs, with attention on the Reserve Bank of Australia (RBA) meeting on Tuesday.

The RBA is largely expected to maintain unchanged rates, though it may adopt a hawkish tone due to persistent inflation. The RBA might indicate a delay in interest rate cuts, with ANZ forecasting cuts to start in the first quarter of 2025.

Broader Asian markets experienced cautious advancement ahead of the U.S. elections and the Fed meeting.

Recent polls show a tight race between Donald Trump and Kamala Harris, increasing speculation over a Trump victory, which has added pressure on Asian markets due to his promised trade tariffs on China.

On Monday, South Korea’s KOSPI rose by 1.4%, buoyed by strength in local chipmaking stocks.

Futures for India’s Nifty 50 index hinted at a flat open as Indian stocks struggled after falling from record highs in October, with more significant earnings due this week.