Asian stocks kicked-off the trading week sharply higher with Japan markets up more than 3 percent. China's key stock index made a tentatively steady start after a week-long break, as investors digested Chinese and U.S. policy moves and activity on global markets.
China's central bank raised banks' required reserves and the U.S. Federal Reserve raised its discount rate after the market closed for last week's Lunar New Year holiday.
The Shanghai Composite Index opened nearly flat at 3,016.703 points compared with 3,018.133 at the close on Feb. 12, the last trading day ahead of the break. It then slipped as much as 0.46 percent before rising 0.28 percent to the morning's peak of 3,026.659.
The market's relatively flat opening reassured overseas markets that had been spooked by China's reserve ratio hike, with Hong Kong's benchmark Hang Seng Index rising 2.4 percent in early trade while its China Enterprises Index of top locally listed mainland Chinese stocks was up 2.50 percent.
The Shanghai-listed A shares of top lender Industrial and Commercial Bank of China dropped 0.20 percent, while Bank of Communications (BoCom) was down 0.85 percent.
BoCom is asking investment banks to submit plans for a fundraising exercise estimated at 25 billion yuan ($3.7 billion) to bolster its stretched balance sheet, a Hong Kong newspaper reported last week.
Tokyo, Seoul Rally
Japan's Nikkei stock average rose over 3 percent on Monday, with exporters such as Sony buoyed by U.S. share gains after investors took the Federal Reserve's discount rate hike as a sign the financial system is healing.
Recall-hit Toyota Motor rose 2.1 percent to 3,370 yen despite a July 2009 company document that showed it was aware of sudden acceleration complaints. Insurer State Farm also said it notified regulators of concerns about a trend in accidents involving Toyota cars more than three years earlier than previously thought.
Takeda Pharmaceutical rose 1.2 percent after safety reviewers recommended GlaxoSmithKline] diabetes drug Avandia be pulled from the market after concluding it is more dangerous to the heart than Takeda's Actos.
