BEIJING - Asian markets rose on Monday after Federal Reserve chief Jerome Powell said officials would take a careful approach regarding interest rate hikes, while Chinese shares soared after the government cut the duty on trades.
In a much-anticipated speech Friday, the US central bank boss left the door open to more tightening but repeated his pledge that decision-making would be data-dependent as policymakers try to bring inflation to heel.
Powell's comments suggested borrowing costs would be held at a 22-year high of 5.25-5.5 percent next month, though investors remain concerned more could come before year's end.
While inflation is coming down, markets have been hit in recent weeks by a strong run of economic data -- particularly on jobs -- that has been seen as putting pressure on the Fed to keep hiking.
"If the data continues to show an ease in labour market tightness and price pressures, then the Fed is likely done with its tightening cycle," said National Australia Bank's Rodrigo Catril.
"If the data doesn't play ball, then further tightening should be expected. Thus, upcoming key market data releases (inflation and labour market) are likely to set the tone for markets over coming months."
The remarks sent US stocks lower initially before they bounced to end Friday on a positive note.
And Asia followed suit Monday, with Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Jakarta and Wellington all enjoying a strong start to the week.
Shanghai and Hong Kong soared at the open following China's decision to slash the tax paid on stock trades for the first time since 2008 as authorities battle to support the world's second-largest economy.
The Ministry of Finance and its State Taxation Administration said in a joint statement the move was designed to "invigorate the capital market and boost investor confidence".
Officials also said they would slow the pace of new listings, which usually suck up market liquidity.