SINGAPORE – Australian shares rose more than 1% while markets in Hong Kong and South Korea were lower on Monday ahead of this week’s central bank decisions in Australia and Malaysia.
That S&P/ASX200 up 1.26% with banking and retail stocks in the green.
Markets in Japan and mainland China were also higher.
That Nike 225 in Japan pared earlier gains to trade 0.54% higher, while the Topix index was up about 1%.
Hong Kong and South Korea stocks fell.
That Hang Seng Index closed on Friday and slipped as much as 1.8% in early trade on Monday. Most recently, it was down 0.59%.
Exchange-traded funds will be included in the equity link system linking Hong Kong and mainland China from Monday.
South Korea kospi initially struggled for direction and was last down 0.91% while the Kosdaq was down 1.92%.
MSCI’s broadest index of Asia Pacific equities outside of Japan traded 0.13% lower.
In Southeast Asia, Indonesia’s Jakarta Composite fell 2.54%.
Dan Fineman, co-head of Asia Pacific equity strategy at Credit Suisse, said markets appear to have adequately priced in the magnitude of upcoming Fed hikes, but the “very high risk of recession” means markets are unlikely to rise .
“I think the worst is behind us. We’ll probably bump into the bottom, maybe a little further down, but I don’t think the difficulties of the first half will be repeated to the same extent in the second half.” he told CNBC’s Street Signs Asia on Monday.
That US dollar indexwhich tracks the greenback against a basket of its peers was 105.143.
“The possibility of 75 basis point hikes in the June and July meetings keeps the USD strong near-term, but we maintain our core view that dollar strength will fade later in the year,” wrote Richard Yetsenga, chief economist at ANZ, in a Notes for Monday.