Asian stock markets rose Monday after Wall Street hit a new record and China promised support for entrepreneurs to shore up economic growth.
Shanghai, Tokyo, Hong and Sydney advanced ahead of a Federal Reserve policy meeting this week at which higher U.S. inflation might influence a decision on when to start rolling back stimulus that is boosting stock markets.
Wall Street’s benchmark S&P 500 index closed hit a new record on Friday up 3.8% for the week in a rally led by tech companies.
Also Friday, Chinese leaders promised tax cuts and other support for entrepreneurs at an annual planning meeting that emphasized maintaining stability after economic growth fell to an unexpectedly low 4.9% over a year earlier in the latest quarter.
The ruling Communist Party wants to “avert a hard landing” ahead of leadership changes at a meeting late next year, said Vishnu Varathan of Mizuho Bank in a report.
The Shanghai Composite Index rose 1% to 3,702.88 and the Hang Seng in Hong Kong gained 1% to 24,238.13.
The Nikkei 225 in Tokyo advanced 0.9% to 28,691.98 after the quarterly Tankan survey showed stronger improvement in business conditions for service industries than expected.
