Asia-Pacific markets rise on Monday after China introduced a targeted initiative over the weekend to stimulate consumption through salary increases, higher household spending, and efforts to steady stock and real estate markets. China, also lifted sentiment, after industrial production in the mainland grew more than expected and retail sales growth accelerated. Meanwhile, investors look forward to a series of central bank policy meetings later this week, including the U.S. Federal Reserve’s decision. Japan ( NKY:IND ) rose 1.18% to above 37,400, while the broader Topix Index also gained 1.2% to 2,748 on Monday, with both benchmarks reaching their highest levels in over a week amid a broad market advance. The Japanese yen traded around 148.6 per dollar on Monday, hovering near a five-month-high. In corporate news, the European Commission approved a joint venture between Toyota Motor and Chinese firms Minmetals and Meiwa aimed at advancing lithium-ion battery recycling. China ( SHCOMP ) rose 0.28% to around 3,430 while the Shenzhen Component climbed 0.1% to 10,990 on Monday, extending gains from the previous session as traders digested upbeat economic data, including a 4% year-on-year rise in retail sales for the first two months of 2025, and the offshore yuan held its recent gain around 7.24 per dollar after China announced its special action plan over the weekend to boost consumption and stabilize stock and real estate markets. China’s industrial output grew 5.9% y/y in the first two months of 2025, exceeding the 5.3% forecast , while retail sales rose 4.0%, in line with consensus. China’s fixed-asset investment increased by 4.1% year-on-year in January-February 2025, exceeding market expectations of a 3.6% rise. However, the surveyed unemployment rate edged up to a two-year high of 5.4% in February from 5.2%, exceeding market expectations of 5.1%. Hong Kong ( HSI ) rose 1.20% to 24,338 in Monday morning trading, jumping for the second session amid mounting optimism over China’s newly announced “Special Action Plan to Boost Consumption,” aimed at stimulating domestic demand. India ( SENSEX ) rose 0.41% to 74,043 in the morning session on Monday, halting losses from the previous five sessions, mainly boosted by gains in pharmaceuticals, healthcare, financial services, and metals. Australia ( AS51 ) rose 0.83% to close at 7,854 on Monday, extending gains from the previous session. The Australian dollar climbed to around $0.633 on Monday, reaching a one-week high. Investors are now looking ahead to domestic jobs data later this week to assess the health of the labor market and its potential impact on monetary policy. In the U.S., on Friday, all three major indexes ended higher as fears of a US government shutdown eased and investors shrugged off weak consumer sentiment data. U.S. stock futures fell on Monday as investors searched for fresh market catalysts in the new trading week: Dow -0.46% ; S&P 500 -0.56% ; Nasdaq -0.60% . Investors now look to US retail sales data on Monday for further insights into consumer spending trends and the broader economic outlook. Additionally, investors are worried about potential supply disruptions after the U.S. vowed to keep hitting Houthis until shipping attacks in the Red Sea stop. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s retail sales accelerate 4.0% Y/Y; industrial output grow 5.9% y/y exceeds forecasts; unveils special action plan Japan producer prices rise 4% Y/Y in February 2025, as expected Japan Q4 GDP growth revised slightly lower; annualized basis economy expands by 2.2% China’s CPI fell for first time in 13 months, PPI deflation persists China's trade surplus surpass forecasts, exports grow by 2.3% and imports shrink
