Asian stocks rose as Tokyo shares rallied for a third day and Group of 20 leaders pledged to use fiscal policy to strengthen growth and job creation.
The MSCI Asia Pacific Index gained 0.4 percent to 120.08 as of 9:09 a.m. in Tokyo. Investors are looking for clues as to the strength of the global economy after finance chiefs from the world’s top economies committed their governments over the weekend to doing more to boost global growth amid mounting concerns over the potency of monetary policy. Japan’s most recent round of monetary easing was a focus of the meeting, amid concern it could spur a round of competitive currency devaluations, said Eurogroup chief Jeroen Dijsselbloem.
The G-20 members reaffirmed they will refrain from competitive devaluations, and — in new language — agreed to consult closely on currencies. Chinese manufacturing data due Tuesday and the monthly U.S. jobs report Friday are just two of a string of closely watched economic data points scheduled to be released this week.
Asia’s benchmark index is down 9 percent in 2016, compared with a 4.7 percent slide in the S&P 500. Slumping commodities prices, a surprise devaluation of the yuan and a move into negative rates from the BOJ roiled equity markets at a time the Federal Reserve is considering how fast it can lift U.S. interest rates without choking off the economic recovery.