Asian Stocks Outside Japan Advance With Oil Before Fed Meeting

  • Australian bourse shuts early after late open on malfunction
  • Taiwan shares surge as Apple suppliers rise on iPhone 7 sales

Asian stocks outside of Japan rose with oil as investors weighed stronger-than-expected U.S. inflation data ahead of policy meetings by the Federal Reserve and the Bank of Japan later this week.

The MSCI Asia Pacific Excluding Japan Index gained 1.2 percent to 446.19 as of 4:01 p.m. in Hong Kong, heading for a one-week high. West Texas Intermediate crude rose as much as 2.1 percent after slumping 6.2 percent last week. Japanese markets are shut for a holiday, while those in China, Hong Kong, Taiwan, South Korea and Malaysia reopened following holidays last week.

Oil rebounded from the lowest close in a month after clashes halted what would have been the first crude shipment from Libya’s Ras Lanuf export terminal since 2014. Monetary policy uncertainty has helped reignite volatility in global markets, with traders split over what action the BOJ will undertake in its review Wednesday. Bets on an interest-rate hike from the Fed this week remain around 20 percent even as inflation data for August rose more than projected.

“Sentiment is being boosted by a rebound in oil,” said Vasu Menon, vice president for wealth management research at Oversea-Chinese Banking Corp. in Singapore. “Oil has become somewhat of an indicator of risk appetite in the market. With inflation numbers picking up a little bit in the U.S., the market will start worrying about the Fed again at some stage down the road.”

Trading Glitch

Australia’s S&P/ASX 200 Index closed little changed after the nation’s stock exchange halted trading earlier than usual due to technical problems that also caused the market to open more than an hour late. There will be no closing price auction that normally takes place at the end of the trading day, ASX Ltd. said in a statement.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong climbed 1.9 percent, the most since May. The Shanghai Composite Index rose 0.8 percent.

Chinese home prices increased the most in more than six years last month, suggesting local government efforts to avert a housing bubble are having only a limited effect. Average new-home prices in the 70 cities tracked by the government rose 1.2 percent in August from July, according to Bloomberg calculations based on the official data released Monday.

Hong Kong’s Hang Seng Index advanced 0.9 percent and South Korea’s Kospi index rose 0.8 percent. New Zealand’s S&P/NZX 50 Index added 0.4 percent, Singapore’s Straits Times Index gained 0.3 percent and the Jakarta Composite Index climbed 1 percent.

Apple Suppliers Rally

Taiwan’s Taiex index jumped 2.8 percent, its biggest advance since September 2015, as Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Co. paced gains among Apple Inc.’s suppliers amid better-than-expected demand for the iPhone 7.

TSMC rose 5.2 percent and Foxconn was up 6.8 percent in Taipei after the Economic Daily News reported that Apple asked Foxconn to get ready to produce more phones amid strong sales. Sunac China Holdings Ltd. rose 7.5 percent in Hong Kong after the developer announced plans to buy properties worth 13.8 billion yuan ($2.1 billion) from Legend Holdings Corp. Santos Ltd. climbed 2.6 percent in Sydney, pacing gains among energy producers as crude oil futures rebounded.

Futures on the S&P 500 Index rose 0.4 percent after the underlying U.S. equity benchmark slipped 0.4 percent on Friday as economic indicators pointed to uneven growth in the world’s largest economy.

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