Asian stocks ended mostly higher on Monday as investors waited for clarity on the Federal Reserve's future policy course. At the conclusion of the Fed's two-day policy meeting on Wednesday, Chairman Ben Bernanke is expected to clarify that his plans to scale back the central bank's massive bond-buying program later this year would not mean a tightening of monetary policy and that he is committed to keep Fed Funds rate lower for longer. Fearing market volatility, the International Monetary Fund has warned against an early ending of the Fed's ultra-easy monetary policy.
Japanese stocks rose for the second straight session, as investors sought bargains after the recent selling spree. The Nikkei average jumped 347 points or 2.7 percent to 13,033 after rising 1.9 percent on Friday. The broader Topix index also added 2.7 percent in relatively thin trading. Heavyweights Fast Retailing and SoftBank rose 3-4 percent, automaker Toyota Motor gained 2 percent and electronics giant Kyocera advanced 2.7 percent. Defensive stocks saw buying interest, with Eisai, Japan Tobacco and Kao Corp climbing 5-6 percent.
The yen fell against the dollar and the euro as stocks extended gains and traders speculated the Fed will signal it is in no hurry to tighten policy. In economic releases, an index measuring tertiary industry activity in Japan came in unchanged in April from the previous month, the Ministry of Economy, Trade and Industry reported.
Australian shares reversed early losses to finish higher, led by banks. The benchmark S&P/ASX 200 rose 34 points or 0.7 percent to 4,826. ANZ led the banks higher with a 2.3 percent gain, while Commonwealth rose 2 percent and NAB advanced 1.8 percent. Battered Fortescue Metals Group tumbled 2.7 percent, BHP Billiton edged down 0.3 percent and Rio Tinto shed 0.6 percent. Qantas Airways added 2.6 percent after reports said China Southern considered buying a 10-15 percent stake in Qantas early this year.
Lend Lease slumped 7.5 percent after the company announced a major revamp of its Australian construction and infrastructure businesses due to softening market conditions. In economic news, sales of new motor vehicles in Australia were flat in May, coming in at 93,209, the Australian Bureau of Statistics reported.
South Korea's Kospi average slid 0.3 percent to 1,883 as investors adopted a cautious stance before the FOMC meeting slated for this week. Tech shares led the declines, with Samsung Electronics posting a modest 0.2 percent loss, while SK Hynix and LG Display fell over 3 percent each.
New Zealand shares rose for a second day as investors hunted for bargains finding value in a relatively expensive market. The benchmark NZX-50 rose 27 points or 0.6 percent to 4,448. Heavyweight Telecom gained 1.1 percent and Fletcher Building added 1.2 percent, while Contact Energy, New Zealand Oil & Gas and Tower all closed up about 3 percent each. Cavalier lost 2.3 percent as founder Tony Timpson died at the age of 80 after a recent bout of ill health.
Jeweler Michael Hill soared 3.9 percent after a survey from Westpac Bank revealed that New Zealand consumer confidence surged to its highest level since the second quarter of 2010, buoyed by low interest rates and a rising housing market. The headline index jumped to 116.6 in the June quarter, up from 110.8 in the previous three months. Separately, an index measuring the strength of the services sector in New Zealand edged up to its highest level in six years in May, BusinessNZ said.
Elsewhere, China's Shanghai Composite index slipped 0.3 percent, while Hong Kong's Hang Seng index closed up 1.2 percent. India's Sensex was rising half a percent, extending Friday's rally, even as the Reserve Bank of India kept its key policy rates and the Cash Reserve Ratio unchanged, citing high food inflation and the pressure on the rupee.
Indonesia's Jakarta Composite index was up 0.4 percent, Malaysia's KLSE Composite was gaining 0.6 percent, Singapore's Straits Times was up 0.8 percent and the Taiwan Weighted average gained 0.7 percent. Singapore's non-oil exports declined more than expected in May due to a drop in electronic shipments, the latest data from International Enterprise Singapore showed.
U.S. stocks ended firmly in the red on Friday, with disappointing industrial production and consumer confidence data weighing on the markets following the previous session's rally. The Dow slid 0.7 percent, while the tech-heavy Nasdaq and the S&P 500 dropped about 0.6 percent each.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.