Asian shares mostly higher with Shanghai up sharply, Nikkei eases

Investing.com - Shares in Tokyo eased slightly in Asia on Monday, but China powered ahead with Sydney on expectations that further easing in monetary policy is possible in the Middle Kingdom and Australia.

The Nikkei 225 fell 0.07% at the break, but the Shanghai Composite jumped 1.87% and the Hang Seng index gained 1.30%, while the S&P/ASX 200 rose 0.68%.

Last week, U.S. stocks were higher after the close on Friday, as gains in the Consumer Services, Technology and Utilities sectors led shares higher.

At the close in New York, the Dow Jones Industrial Average rose 0.12%, while the S&P 500 index added 0.23%, and the NASDAQ Composite index climbed 0.71%.

The gains came as fresh economic data underlined concerns that the recovery is losing momentum.

The Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February.

The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report.

The data came after recent weak reports on home sales, retail sales and industrial production, adding to signs of a slowdown in economic growth since the start of the year.

The weak data added to pressure on the dollar which has been hit as investors pushed back expectations on the timing of an initial rate hike by the Federal Reserve.

The single currency was held in check as concerns over Greece’s debt negotiations continued. Euro area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.

In the week ahead investors will be looking to Wednesday’s Fed statement for clues on the possible timing of a rate increase. Investors will also be focusing on Wednesday’s preliminary reading on U.S. first quarter growth as well as reports on inflation, consumer confidence and manufacturing.

Central bank meetings in Japan and New Zealand will also be in focus, as will Thursday's preliminary data on euro zone inflation.

On Monday, markets in New Zealand will remain closed for a holiday.

The U.K. is to release private sector data on industrial order expectations.