Asian Shares Rise Despite Weak China Data

(RTTNews) - Asian stocks ended mostly higher on Monday, even as overall gains remained limited after China reiterated its commitment to maintaining strict COVID-related curbs and data showed further deterioration in China's trade balance in October.

Underlying sentiment remained supported somewhat after several Fed officials signaled last week that they supported a smaller rate hike in December.

Also helping aid risk sentiment, a tweet by Bloomberg stated that the White House is privately suggesting Ukraine's president indicate an openness to talks with Russia.

China's Shanghai Composite index edged up 0.23 percent to 3,077.82 despite officials from China's health commission reiterating their commitment to maintain the zero-COVID policy, which entails strict lockdown measures to prevent transmission. Hong Kong's Hang Seng index jumped 2.69 percent to 16,595.91.

Data showed earlier in the day that China exports and imports both unexpectedly shrank in October in U.S. dollar terms as a result of weakening global demand and new COID-19 curbs at home. Exports fell by 0.3 percent from a year ago and imports declined 0.7 percent.

Japanese markets rallied, with the Nikkei average climbing 1.21 percent to 27,527.64 on expectations that the Federal Reserve will slow its pace of interest rate hikes. The broader Topix index closed 0.98 percent higher at 1,934.09.

JFE Holdings soared 7.3 percent after the steelmaker raised its annual profit outlook. Peers Nippon Steel and Kobe Steel jumped 3.1 percent and 3.9 percent, respectively.

On the flip side, office equipment maker Ricoh plunged 7.8 percent and smartphone maker Sharp fell 3.3 percent on downbeat earnings.

Seoul stocks rose sharply to extend gains for a second straight session. The Kospi average climbed 0.99 percent to 2,371.79.

Tech and auto giants topped the gainers list after reports that the chair of Boeing Co. met with top officials of Samsung Electronics, Hyundai Motor Group and Hanwha Solutions to discuss new business cooperation.

Australian markets rose notably, with mining and energy stocks leading the surge. Financials fell, with Westpac Banking Corp tumbling 3.9 percent after the country's No. 3 lender reported a drop in its annual earnings.

The benchmark S&P/ASX 200 index rose 0.60 percent to 6,933.70 while the broader All Ordinaries index gained 0.56 percent to settle at 7,129.20.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index rose 0.53 percent to close at 11,290.34.

U.S. stocks saw much volatility before eventually ending sharply higher on Friday, as October's jobs report showing strong jobs growth and an uptick in unemployment rate left analysts divided.

Meanwhile, comments from four Fed officials sounded less hawkish than Chair Jerome Powell.

The Dow, the S&P 500 and the tech-heavy Nasdaq Composite rose between 1.3 percent and 1.4 percent after closing lower for four straight sessions.