Investing.com – Asian stocks rose in morning trade on Monday on the back of strong jobs data in the U.S. Meanwhile, progress made on Sino-U.S. trade talks was also supportive.
Shares in Hong Kong and China climbed after reopening from a holiday. The Shanghai Composite and the Shenzhen Component rose 0.6% and 0.3% respectively. The Hang Seng Index gained 0.6%.
Citing a government document, Reuters reported on Monday that China would step up a policy of targeted cuts to banks’ required reserve ratio. The move is expected to encourage financing for local businesses.
Down under, Australia’s ASX 200 was up 0.6%.
In the U.S., government data released on Friday showed the U.S. economy added 196,000 jobs in March, more than the expected 175,000 jobs.
U.S. President Donald Trump said following the release of the job reports that the economy would rise like “a rocket ship” if the Federal Reserve cut interest rates.
The stronger-than-expected data lifted U.S. stocks on Friday and was cited as a catalyst for the buying in Asian equities today.
Separately, Chinese official broadcaster CCTV reported that there was “new progress” in trade talks that wrapped in Washington on Friday.
The two sides have discussed issues including technology transfer, protection of intellectual property rights, and the bilateral trade balance.
Trump’s top economic adviser, Larry Kudlow, told CBS on Sunday that the two sides are “closer and closer” on a trade deal, although the White House said in a statement that “significant work remains, and the principals, deputy ministers, and delegation members will be in continuous contact to resolve outstanding issues.