Investing.com - Asian shares rose on Monday in thin trading with several regional markets shut, including China and India, and little regional equity reaction to the dispute independence referendum in Spain's Catalonia province.
The Nikkei 225 rose 0.16%, while Australia's S&P/ASX 200 jumped 1.05%. Markets in Shanghai, Hong Kong, South Korea and India were shot for holdiays.
The Bank of Japan released its Tankan survey for the third quarter with investors focused on the large manufacturers index as it rose to 22, compared with an expected reading of 18.
This week, comments by Fed Chair Janet Yellen will be closely watched for further hints on the timing of the next rate hike along with Friday’s U.S. jobs report.
Market watchers will be looking ahead to remarks by European Central Bank President Mario Draghi on Wednesday.
Also on Monday, financial markets in China will remain closed for a holiday along with South Korea, India and Hong Kong and the UK is to release data on manufacturing activity.
At the weekend, China's central bank on Saturday cut the amount of cash that some banks must hold as reserves for the first time since February 2016 in a bid to encourage more lending to struggling smaller firms and energize its lackluster private sector.
The People's Bank of China (PBOC) said on its website that it would cut the reserve requirement ratio (RRR) for some banks that meet certain requirements for lending to small business and the agricultural sector.
The PBOC also said said it will maintain prudent and neutral monetary policy and use multiple monetary policy tools to keep liquidity basically stable. The PBOC will continue with interest rate and exchange rate reform while keeping the yuan basically stable, the bank said in comments on its website following a quarterly meeting of its monetary policy committee.
Separately, China's manufacturing activity grew at the fastest pace since 2012 in September as factories cranked up output to take advantage of strong demand and high prices, easing worries of a slowdown before a key political meeting next month.
The official Purchasing Managers' Index (PMI) released on Saturday rose to 52.4 in September, from 51.7 in August and well above the 50-point mark that separates growth from contraction on a monthly basis.
The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) however fell to 51.0 in September, compared with 51.6 in August, as new export order growth slipped.
Last week, the S&P 500 closed in record territory on Friday, led by a surge in technology stocks pushing the index to its eight straight quarter of gains as traders shrugged off weaker than expected inflation.
The Dow Jones Industrial Average closed higher at 22387. The S&P 500 closed 0.37% higher while the Nasdaq Composite closed at 6495.96, up 0.66%.
In what was the final trading day of the quarter, risk sentiment spiked as investors piled in stocks despite mixed economic reports on consumer spending and inflation.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, edged up 0.1% last month. The commerce department said Friday.
Inflation, however remained subdued, as the core personal consumption expenditures price index slowed to 1.3% in August from 1.4% in July. The core PCE is the Federal Reserve's preferred inflation measure and has a 2 percent target.
On the political front, investors weighed the possibility of a new Federal Reserve chair amid speculation surrounding the future of Janet Yellen’s position after both President Donald Trump and U.S. Treasury Secretary Steven Mnuchin reportedly met with Kevin Warsh to discuss the possibility of his nomination to replace Yellen.