Markets rise as traders cheered by China property plan

HONG KONG, China — Equities rose Monday, extending a rally in New York that saw the Dow close at a record high, with sentiment boosted by China's plan to support its struggling property sector and hopes for a US interest rate cut.

The announcement out of Beijing on Friday provided a much-needed boost to the country's ailing developers, many of whom are drowning in a sea of debt.

The multibillion-dollar plan -- as well as an easing of deposit requirements for buyers -- fuelled optimism for the outlook on the world's number-two economy, which has been hobbled by the property crisis.

While analysts have warned the package of proposals was still too small to solve the problem and might not go far enough, traders continued to buy up risk assets.

"We believe the policy package is just the beginning of the central government's efforts to turn the sector around," said Nomura Holdings analysts.

"We believe the swift introduction of the policy package with arguably limited implementation details also implies the central government's increasing urgency to alleviate the downward spiral of the property sector."

Hong Kong extended its recent gains, though some Chinese developers fell on profit-taking after soaring in the previous session. Shanghai, Tokyo, Sydney, Seoul, Mumbai, Wellington, Taipei, Manila and Jakarta also advanced.

Bangkok edged slightly higher as data showed the Thai economy grew more than expected in the first quarter but at a slower pace than the previous three months.

London, Paris and Frankfurt also rose.

The positive start to the week came after the Dow ended above 40,000 for the first time on Friday, while the S&P 500 also rose.

Investors are now looking forward to the release Wednesday of minutes from the Federal Reserve's May policy decision, hoping for some insight into the thinking of decision-makers.

The release comes after data last week showed inflation easing in April, reviving hopes the central bank would cut rates twice this year. That came after inflation rising more than expected in the previous three months.

Analysts forecast two reductions before January, with more over the next two years.

However, Fed governor Michelle Bowman said she