Asian Shares Advance On China Optimism

Asian stocks advanced on Monday after Chinese regulators announced new measures to bolster the country’s equity market and the property sector.

China’s securities regulator announced over the weekend that it would halt the lending of certain shares for short selling from Monday.

In another development, the southern city of Guangzhou eased home-buying restrictions as part of measures to boost the property sector.

Regional gains, however, remain capped ahead of a busy week of earnings, economic data releases and central bank decisions.

The U.S. dollar held steady in Asian trade as focus shifted to Wednesday’s FOMC meeting as well as a slew of economic data due this week, including jobless data and payrolls report that will help gauge the strength of labor market.

Oil prices climbed as tensions escalated in the Middle East. U.S. President Joe Biden vowed retaliation after missiles launched by Iran-backed militants killed U.S. troops in Jordan and struck a fuel tanker in the Red Sea.

China’s Shanghai Composite index fluctuated before finishing 0.92 percent lower at 2,883.36 as a court ordered China Evergrande Group to undergo liquidation. Hong Kong’s Hang Seng index rose 0.78 percent to 16,077.24.

Japanese shares rose notably as a cheaper yen boosted exporters and energy shares were lifted by higher oil prices.

The Nikkei average jumped 0.77 percent to 36,026.94 while the broader Topix index settled 1.27 percent higher at 2,529.48.

Seoul stocks rallied, with the Kospi average climbing 0.89 percent to 2,500.65 – gaining for a third consecutive session on institutional and foreign buying.

Samsung Biologics rallied 3.5 percent and SK Biopharmaceuticals surged 6.7 percent following recent legislative moves in the United States Congress to effectively ban Chinese genomics company from doing business in the U.S.

Automakers Hyundai Motor and Kia soared 4.4 percent and 5.8 percent, respectively while refiner SK Innovation added 3.9 percent.

Australian markets eked out modest gains…