As the U.S. may announce a reversal of certain tariffs on Chinese consumer products this week, Asia-Pacific stocks were mostly higher on Monday morning.
The Nikkei 225 index in Japan rose 0.69 percent around 10:33 PM ET (2:33 AM GMT).
The KOSPI increased by 1.42 percent.
The ASX 200 climbed 0.27 percent in Australia.
Hong Kong’s Hang Seng was up 0.77 percent .
The Shanghai Composite decreased by 0.04 percent, while the Shenzhen Component declined by 0.51 percent.
S&P 500 and Nasdaq 100 gained around 0.5% from Friday’s closing. On Monday, U.S. markets were closed for the Independence Day holiday.
Yields on 10-year U.S. Treasuries surpassed 2.95 percent on the return from a holiday.
To combat inflation, U.S. President Joe Biden may pull back certain tariffs on Chinese consumer products this week. The Biden administration might also launch an investigation into industry subsidies, which could lead to the imposition of further tariffs in vital sectors such as technology.
On Chinese goods worth $300 billion, speculation has risen that Biden may decrease certain duties imposed by the Trump administration. The government is under pressure to reduce inflation.
Bloomberg quoted Charu Chanana, a senior market analyst at Saxo Capital Markets Pte., as saying, “Markets are likely to respond strongly on a knee-jerk basis because we are starving for any kind of good news.”
However, we do not anticipate a large effect on global economic and inflation trends.
In Asia-Pacific, China’s services activity expanded at its quickest pace in over a year in June, as COVID restrictions were relaxed and demand returned. In June, the China Caixin services purchasing managers’ index (PM) increased to 54.5, indicating the quickest growth since July 2012 and the first expansion since February.
Currently, investors are also keeping an eye on Australia’s interest-rate decision, which is expected later in the day. The central bank is anticipated to increase interest rates by a half-percentage point twice in a row.