Asian Shares Mixed As Investors Await Powell’s Testimony

Asian stocks turned in a mixed performance on Monday as investors awaited cues from Federal Reserve Chair Jerome Powell’s congressional testimony and the annual meeting of China’s top political advisory body.

The dollar moved in a tight range while gold held near a two-month high in Asian trading on hopes for a Fed rate cut in June.

Oil held near the highest level this year, following the widely expected extension of voluntary output cuts by the OPEC+ producer group on Sunday.

China’s Shanghai Composite index rose 0.41 percent to 3,039.31 as the annual Congress convened, with investors expecting measures to revive a slowing economy and salvage the property market.

Accelerated clean-up of distressed developers and other policies will help smooth the path to a smaller, more sustainable role in China’s economy, the International Monetary Fund said in a report.

Hong Kong’s Hang Seng index finished marginally higher at 16,595.97 after a choppy session.

Japanese shares advanced after reports emerged that the government would declare victory over inflation.

The Nikkei 225 average rose half a percent to 40,109.23, surpassing the crucial 40,000 level for the first time led by tech stocks. The broader Topix index settled 0.12 percent lower at 2,706.28.

Advantest rallied 3.7 percent and Renesas Electronics surged 4.9 percent on expectations of a boom in artificial intelligence.

Seoul stocks rallied on extended buying by overseas investors. The Kospi average jumped 1.21 percent to 2,674.27 led by financial and technology stocks.

Investors cheered data showing that South Korea’s industrial output rose for the third consecutive month in January.

Ecopro shares climbed 2.4 percent after the battery manufacturer said it would introduce the Closed Loop System V2, integrating eco-friendly technology, at battery-focused events in South Korea and Japan.

Australian markets edged down slightly after mixed readings on company profits and building approvals.

The benchmark S&P/ASX 200 dipped 0.13 percent to 7,735.80 while the broader All Ordinaries index ended down 0.13 percent at 7,996.50.

Mining and energy stocks led losses ahead of Q4 GDP data due on Wednesday. Lithium miner Lake Resources slumped 11.1 percent after announcing job cuts to further reduce losses.

Renewable energy firm Genex Power soared 32.4 percent after it received a takeover offer from Japan’s Electric Power Development.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index dropped 0.17 percent to 11,724.21 after data showed Q4 terms of trade dropped from the previous quarter.

U.S. stocks closed higher on Friday as Dell reported strong Q4 earnings and weak manufacturing and consumer sentiment data sent 2-, 10- and 30-year Treasury yields to around three-week lows.

The tech-heavy Nasdaq Composite and the S&P 500 jumped 1.1 percent and 0.8 percent, respectively to reach new record closing highs while the Dow edged up 0.2 percent.

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