Stocks in Asia Pacific were higher during Monday’s trading session, with shares in mainland China leading regional gains.
The Shanghai composite soared 5.71% to close at around 3,332.88 while the Shenzhen component rose 4.089% to finish its trading day at about 12,941.72. The CSI 300, which tracks the largest stocks listed on the mainland, also surged 5.67% to close at around 4,670.09.
Jackson Wong, asset management director at Amber Hill Capital, told CNBC in an email that “bull sentiment” in mainland Chinese shares was “driving the markets.”
Wong said the “sudden surge” in trading volume, as well as a break out for the Shanghai composite last week, raised investor expectations that “another bull run is coming.” Some of the reasons he suggested for the uptick in sentiment included the country being less affected by the coronavirus outbreak at the moment.
BOCOM International’s Hao Hong told CNBC that the Shanghai composite has “broken through” its 850-day long-term moving average.
“The market continues to believe that the central bank will ease more, as seen by China’s recent credit and monetary expansion,” said Hong, who is managing director and head of research at the firm. However, he added: “In China, the bull comes as swiftly as it leaves.”
Hong Kong’s Hang Seng index also saw robust gains and rose 3.81% on the day to 26,339.16.
Elsewhere in the region, the Nikkei 225 in Japan rose 1.83% to close at 22,714.44 while the Topix index added 1.6% to finish its trading day at 1,577.15. South Korea’s Kospi advanced 1.65% to close at 2,187.93.
Meanwhile, shares in Australia bucked the regional trend and edged lower, with the S&P/ASX 200 dipping 0.71% to close at 6,014.60.
Overall, the MSCI Asia ex-Japan index jumped 1.75%.