Asian Shares Rise On Fed Rate Cut Hopes

(RTTNews) - Asian stocks rose broadly in thin trade on Monday, with Japanese and South Korean markets closed for a public holiday.

The dollar index dropped as Friday's data showing weak U.S. job growth spurred expectations for Fed rate cuts.

Oil prices rose about 1 percent in Asian trading as Saudi Arabia raised the price of its flagship crude to Asia for a third consecutive month.

Gold also traded higher after the Israeli Army told Palestinians to begin evacuating eastern Rafah signaling that a ground invasion is imminent.

Mainland Chinese markets posted strong gains as a private survey revealed China's services sector witnessed a slight moderation in its expansion pace in April, but remained firmly in growth territory.

Sentiment was also boosted after the country's politburo pledged more support for the economy with prudent monetary and proactive fiscal policies.

The benchmark Shanghai Composite index rallied 1.16 percent to 3,140.72 as trading resumed following the May Day holidays. Hong Kong's Hang Seng index rose 0.55 percent to 18,578.30.

Australian markets rose notably, with rate-sensitive financials and property developers leading the surge. Technology and mining stocks also gained ground.

The benchmark S&P ASX 200 climbed 0.70 percent to 7,682.40 ahead of the Reserve Bank of Australia's policy meeting on Tuesday. The broader All Ordinaries index ended 0.69 percent higher at 7,952.30.

Westpac jumped 2.7 percent after the lender increased its buyback program and handed investors a special dividend. Airline Qantas edged up slightly after settling a flight cancellation suit.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index fell 0.98 percent to 11,820.78.

U.S. stocks soared on Friday as Apple reported strong earnings results and a weaker-than-expected April jobs report along with an unexpected contraction in service sector activity in April boosted the case for rate cuts by the third quarter.

Data showed that non-farm payroll employment climbed by 175,000 jobs in April after surging by an upwardly revised 315,000 jobs in March. The jobless rate crept up to 3.9 percent from 3.8 percent in March.

The Dow climbed 1.2 percent, the tech-heavy Nasdaq Composite surged 2 percent and the S&P 500 rallied 1.3 percent.