Investing.com - Asian shares gained on Monday led by the Hang Seng index as sentiment on the global economic outlook remained robust ahead of a U.S. central bank meeting this week.
The Nikkei 225 rose 0.52%, while the Hang Seng jumped 1.04% and the Kospi gained 1.0^%. elsewhere, Australia's S&P/ASX 200 rose 0.50% and the Shanghai Composte edged up 0.25%.
The Federal Reserve Open Market Committee (FOMC) has two-day meeting slated for Sept 19-20, at which members are expected to hold steady, but offer initial details on winding back the central bank's balance sheet.
Over in Australia, ANZ said in a Monday statement that it would not be commenting on "media speculation" about its potential divestment of Wealth Australia. The bank added that the "process is ongoing." ANZ shares rose 1.1%,
Last week, the rally on Wall Street continued as US stocks notched a weekly gain on Friday despite data showing a surprise dip in retail sales last month tapering expectations of solid third quarter economic growth.
The Dow Jones Industrial Average closed higher at 2268.34. The S&P 500 closed 0.18% higher while the Nasdaq Composite closed at 6448.47, up 0.30%.
Investors had to contend with a slew of risk-off events that had threatened to derail the rally in U.S. stocks, as geopolitical tensions resurfaced while retail sales growth unexpectedly dipped in August.
North Korea launched a missile that flew over Japan and landed in the Pacific Ocean, raising geopolitical uncertainty while increasing safe haven demand. The uptick in safe haven demand was short lived, however, as investors downplayed the potential fallout from North Korea’s latest act of aggression.
“Investors have been programmed to more or less ignore stuff with Korea. The last two or three times this kind of thing occurred we went down a little, only to turn back higher. We’ve learned to buy on the dips,” said Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Company.
On the economic front, investors mulled over a flurry of reports that did little to raise hopes of solid third-quarter economic growth. The Commerce Department said on Friday retail sales dipped 0.2% last month, missing expectations of a 0.1% rise.
The soft retail sales data came just hours ahead of manufacturing and consumer sentiment that topped forecasts.
The New York Empire State Manufacturing Survey declined to 24.4 for September from 25.2 previously, although this was significantly above consensus expectations of 19.0.
After hitting seven month highs in August, the consumer sentiment index, a survey of consumers by The University of Michigan, fell to 95.3 in September but handily topped expectations.