Asian stocks rose on Monday as investors await policy meetings by the Federal Reserve and Bank of Japan this week.
The weaker yen sent Japanese Topix Index to as high as 0.3 percent on Monday, while the MSCI Asia Pacific index gained 0.1 percent to 134.14 as of 10:01 a.m. in Tokyo.
Analysts expect the Bank of Japan to expand stimulus when policy makers meet later this week, and the US Federal Reserve to leave rates unchanged.
“‘Equity markets may hold up this week ahead of the BOJ and Fed meetings on hopes that these central banks may sound dovish,” Vasu Menon, vice-president for wealth management research at Oversea-Chinese Banking Corp. in Singapore, said by phone. “The hope of future action from policy makers offers more support in the short term even though valuations may not be compelling.”
The Asian regional gauge has gained 1.6 percent this year, while the US S&P 500 Index closed last week at the highest level on record.
Australia’s S&P/ASX 200 Index and New Zealand’s S&P/NZX 50 Index surged 0.1 percent and 0.3 percent respectively. South Korea’s Kospi Index rose 0.2 percent.
Chinese and Hong Kong markets are yet to start trading.