Amid a backdrop of optimism regarding the global economy, Chinese shares spearheaded a rally across most of Asia on Monday. Mainland Chinese blue chips surged by 1.63%, buoyed by news of the country’s manufacturing activity expanding at the fastest pace in 13 months. This positive sentiment reverberated through regional markets, with MSCI’s broadest index of Asia-Pacific shares outside Japan edging up 0.06%.
However, Japanese shares tumbled 1.5%, partly due to concerns about potential yen-buying intervention, which could impact exporter profits and foreign investor returns. Despite this, U.S. stock futures pointed higher, supported by easing inflation pressures and expectations of a June interest rate cut by the Federal Reserve. Meanwhile, commodity markets remained firm, with crude oil prices rising amid a tighter supply-demand outlook and positive developments in China’s economy.