Asian stocks mostly rise as markets watch China, inflation

TOKYO (AP) — Asian stocks advanced Monday as investors weighed uncertainties such as the U.S. mid-term elections and China's possible moves to ease coronavirus restrictions.

Oil prices fell.

China reported its trade shrank in October as global demand weakened and anti-virus controls weighed on domestic consumer spending. Exports declined 0.3% from a year earlier, down from September’s 5.7% growth, the customs agency reported Monday. Imports fell 0.7%, compared with the previous month’s 0.3% expansion.

Speculation about a possible relaxation of China's zero-COVID strategy has had a huge impact on markets. On Monday, Hong Kong's Hang Seng index gained 3.6% to 16,735.26 and Shanghai climbed 0.5% to 3,084.87.

But there has been no official confirmation of a major change.

“Over the weekend, Beijing has dashed hopes of China re-opening in the horizon, by re-asserting of zero-COVID policies. And this could induce fresh caution,” said Tan Boon Heng at Mizuho Bank in Singapore.

In the U.S., Tuesday’s election will decide control of Congress and key governorships. History suggests the party in power may suffer significant losses in the midterms, and decades-high inflation has become a significant issue for the Democrats.

Analysts say regional markets may take a wait-and-see approach ahead of the U.S. mid-term vote.

Japan's benchmark Nikkei 225 jumped 1.3% to 27,554.29 in morning trading. Australia's S&P/ASX 200 gained nearly 0.4% to 6,916.40. South Korea's Kospi gained 0.7% to 2,364.04.

Shares also rose in Taiwan and India.

Wall Street stocks ended last week with a rally but only after yo-yoing several times. Market watchers had data on the U.S. jobs market to digest, considering what it might mean for interest rates and the odds of a recession.

The S&P 500 recorded...