Japanese stocks rose after China cut interest rates on Friday and amid speculation the Bank of Japan will also boost stimulus this week.
The Topix index added 1.2 percent to 1,566.27 as of 9:01 a.m. in Tokyo, building on last week’s gains of 2.8 percent. The Nikkei 225 Stock Average climbed 1.1 percent to 19,024.59, rising above 19,000 for the first time in two months. The Standard & Poor’s 500 Index erased its loss for the year on Friday after policy makers in China cut interest rates and lenders’ reserve requirements, while their counterparts in Europe last week signaled they will bolster stimulus if needed.
China’s announcement to cut benchmark interest rates on Friday came a day after the ECB said it will consider adding to its bond-buying program this year. The Bank of Japan meets on Friday, with 15 of 36 economists surveyed by Bloomberg from Sept. 29-Oct. 2 expecting the central bank to expand monetary stimulus.
E-mini futures on the S&P 500 fell 0.2 percent after the underlying gauge rose 1.1 percent on Friday. Google parent Alphabet Inc., Amazon.com Inc. and Microsoft Corp. added more than $80 billion in market value after earnings topped estimates.