Equity markets in China outperformed the region on Monday, following a report by the China Securities Journal that quoted a senior central banker saying that the country's stock market correction is "almost over."
Yi Gang, deputy governor of the People's Bank of China (PBOC) told an annual meeting of the International Monetary Fund (IMF) and World Bank in Peru that the corrections in the mainland's equity market have had limited impact on the world's second-biggest economy as Beijing has taken a series of measures to avoid systemic risks, reported Reuters citing the official Chinese media.
The central bank also announced over the weekend the expansion of a pilot scheme that allows banks to borrow money using high quality credit assets as collateral.
Meanwhile, investors also seem to be betting on the possibility of further stimulus measures when Beijing meets later this month to discuss the 13th five-year plan, wrote analysts at the Bank of America Merrill Lynch in a note released Monday.
Mainland markets soar
China's share markets came off the day's highs in the afternoon trading session, with the Shanghai Composite closing up 3.3 percent at its highest level since August 24. Earlier in the session, it surged more than 4 percent to hit an intra-day high of 3,318.7.
Among other indexes, the CSI300 Index closed up 3.2 percent to clinch a seven-week peak. The smaller Shenzhen Composite surged 4.2 percent. Hong Kong's Index got a lift from the rally among its mainland peers and traded nearly 1 percent higher on Monday.
ASX loses 0.9%
Australia's index snapped a five-day winning streak as profit-taking brought down key banking and resources heavyweights.
Kospi adds 0.1%
South Korea's Kospi index pared most of its advances by the final hour of trading, but managed to eke out marginal gains to chalk up a five-session winning streak.
Brokerage houses were the day's top performers; Daewoo Securities soared 7.7 percent, while Samsung Securities and Mirae Asset Securities climbed 4.6 and 5.9 percent respectively.
Coway, which was in the spotlight after CJ Group said it is considering a bid for the water purifier sales and rental firm on Monday, slipped 0.1 percent in choppy trade.
The benchmark S&P BSE Sensex index closed 0.65 percent lower, as investors awaited the release of August industrial production and September inflation data later in the day.
According to a Reuters poll, India's consumer price index (CPI) is expected to rise 4.3 percent last month on the back of higher food prices, after falling to a record low of 3.66 percent in August. However, even if inflation picks up in September, it would still remain below the Reserve Bank of India's 6 percent target for January.
Rest of Asia
Taiwan's weighted index marched 1.5 percent higher late Monday, touching its highest level in two months.
In Southeast Asia, Singapore's Straits Times index shook off a negative start to bounce up 1.12 percent at the close to a near eight-week high.
Indonesia's Jakarta Composite gained 0.9 percent to hit its highest level since August 11, while Malaysia's FTSE Bursa Malaysia KLCi slipped back into the red following the release of industrial production data which came in below expectations.
The Malaysian benchmark index close 0.19 percent higher.
Markets in Japan are closed for the Health and Sports Day holiday.
Major U.S. averages finished higher on Friday, with the Nasdaq Composite leading gains by notching up 0.4 percent as investors digested dovish signals from the U.S. Federal Reserve minutes. The blue-chip Dow Jones Industrial Average and the S&P 500 ticked up 0.2 and 0.1 percent respectively.