Asian equities were mostly higher on Monday, led by a rally in Chinese markets, on optimism about the health of the world’s second-largest economy.
Investors continued to monitor geopolitical risks. In Gaza, fighting subsided on Sunday after Hamas Islamist militants said they backed a 24-hour humanitarian truce in light of the Muslim holiday Eid al-Fitr. More than 1,000 Palestinians have been killed in the 20-day conflict.
“Putting the ugliness of the current conflicts to one side, what has been building is strategists and analysts alike are now screaming out about overvaluation in the equity and bond markets and a pullback is not only due, but needed,” said Evan Lucas, market strategist at IG in a note.