Investing.com - Asian stocks shot up on Monday after China's central bank said it was cutting reserve requirement on its financial institutions, giving them more elbow room to lend and fuel economic growth.
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.67%, Australia's S&P/ASX200 was up 1.18%, while Japan’s Nikkei 225 Index was up 1.35%.
China's central bank reduced the ratio of funds banks hold in reserves as a financial cushion to 20.5 percent from 21 percent.
The move aims to prompt banks to lend more, thus injecting the equivalent of billions of dollars into the economy, which will boost demand for goods and services in Japan, Australia and elsewhere in Asia and the Pacific.
Furthermore, European leaders appear set to vote on giving Greece EUR130 billion in aid later Monday, a move that would bring a collective sigh of relief in markets worldwide, as Greece needs the rescue funding to avoid a messy default.
Comments from European financial leaders that a green light for aid to Athens is growing increasingly likely sparked a rally in Asian equities markets.
In Hong Kong, the top gainers included China Life, up 3.18%, China Overseas, up 2.72%, and Ping An, up 2.62%.
In Australia, the top gainers included Billabong, up 8.02%, Lynas Corp., up 6.17%, and Pacific Brands, up 5.97%.
European stock futures indicated a stronger opening.
France's CAC 40 futures pointed to a gain of 0.75%, while Germany ’s DAX 30 futures signaled a gain of 0.84 %. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.58%.
Dow Jones Industrial Average futures were up 0.52% while the S&P 500 futures were up 0.60%.
All eyes will focus on Europe on Monday, when the currency zone's finance ministers meet to vote on Greece.
The Reserve Bank fo Australia will release the minutes of its latest monetary policy meeting.
Monday is a holiday in the U.S.
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.67%, Australia's S&P/ASX200 was up 1.18%, while Japan’s Nikkei 225 Index was up 1.35%.
China's central bank reduced the ratio of funds banks hold in reserves as a financial cushion to 20.5 percent from 21 percent.
The move aims to prompt banks to lend more, thus injecting the equivalent of billions of dollars into the economy, which will boost demand for goods and services in Japan, Australia and elsewhere in Asia and the Pacific.
Furthermore, European leaders appear set to vote on giving Greece EUR130 billion in aid later Monday, a move that would bring a collective sigh of relief in markets worldwide, as Greece needs the rescue funding to avoid a messy default.
Comments from European financial leaders that a green light for aid to Athens is growing increasingly likely sparked a rally in Asian equities markets.
In Hong Kong, the top gainers included China Life, up 3.18%, China Overseas, up 2.72%, and Ping An, up 2.62%.
In Australia, the top gainers included Billabong, up 8.02%, Lynas Corp., up 6.17%, and Pacific Brands, up 5.97%.
European stock futures indicated a stronger opening.
France's CAC 40 futures pointed to a gain of 0.75%, while Germany ’s DAX 30 futures signaled a gain of 0.84 %. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.58%.
Dow Jones Industrial Average futures were up 0.52% while the S&P 500 futures were up 0.60%.
All eyes will focus on Europe on Monday, when the currency zone's finance ministers meet to vote on Greece.
The Reserve Bank fo Australia will release the minutes of its latest monetary policy meeting.
Monday is a holiday in the U.S.