Global shares rose on Monday, lifted by a growing expectation that the Federal Reserve will not raise interest rates any more, and by hopes that China's steady drip feed of policy stimulus might stabilise the economy.
A holiday in the United States made for thin trading ahead of key readings on U.S. services and Chinese trade and inflation later in the week.
More policy action is also expected from Beijing, including relaxing restrictions on home buying.
There was relief that embattled property developer Country Garden won approval from its creditors to extend payments for an onshore private bond.
"Chinese newspapers reported a jump in real estate transactions in Beijing and Shanghai over the weekend after the cuts to mortgage rates and downpayment ratios," wrote analysts RBC Capital Markets.
"Whether this bounce will continue remains to be seen, but it has given China equities a shot in the arm."
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) added 1.1%, having climbed 2.3% last week, thanks in large part to a 1.3% rise in Chinese blue chips (.CSI300).
The MSCI All-World index (.MIWD00000PUS), which last week staged its strongest weekly rally since mid-July, was up 0.2%, while the dollar was around 0.1% lower on the day.
Investor sentiment on the tech sector will be tested this week by the initial public offering for chip giant Arm Holdings, which is aiming for a price in the range of $47 to $51 valuing the company between $50 billion and $54 billion.
S&P 500 futures and Nasdaq futures both edged up 0.1%, while stocks in Europe opened on a strong footing. The STOXX 600 (.STOXX) rose 0.6% in early trading, led by gains in drugmaker Novo Nordisk (NOVOb.CO), which last week briefly overtook French luxury group LVMH (LVMH.PA) as Europe's most valuable company, and Dutch chipmaker ASML (ASML.AS).
More about:
