Asian stocks bouncing higher on improving sentiment, Nikkei climbing into ¥20,100.00

• Risk appetite is pinned firmly to the ‘on’ position for Monday.
• Market sentiment is improving as investors await good tidings from US-China trade talks.

Asian equities are on the rise for Monday as investor sentiment experiences a much-needed relief rally, spurring the Pacific session into a continued bounce with broader markets climbing on a dovish US Fed and better-than-expected US NFP data last Friday sparks a risk-on run in stock markets.

Japanese stocks are surging higher on Monday with the Nikkei 225 climbing 2.70% and Tokyo’s Topix index running up 2.9%; Japanese equities started the trading year late last week after an extended holiday, and Monday’s action is walking back a selloff last week fueled by Japan investors struggling to catch up to 2019’s early bearish sentiment swing.

China is rising with a more tentative note, as Hong Kong’s Hang Seng index rises 0.85% and Shanghai’s CSI 300 lifts 0.30%, although the positive mood in emerging markets is more sedate with the MSCI Asia-Pacific index in the green by just 0.10%. Australia is benefitting from positive sentiment on upcoming US-China trade negotiations however, with the ASX 200 rising 1.15%.

Nikkei 225