By Virginia Harrison and V. Phani Kumar, MarketWatch HONG KONG (MarketWatch) — Most of the major Asian markets ended higher on Monday on expectations for policy stimulus from the U.S. and China, with shares of several regional firms exposed to Chinese growth among gainers. Hong Kong’s Hang Seng Index HK:HSI +0.13% added 0.1%, Australia’s S&P/ASX 200 index AU:XJO +0.18% rose 0.2%, the Shanghai Composite Index CN:000001 +0.50% gained 0.3% and Taiwan’s Taiex XX:Y9999 +0.78% advanced 0.8%. Japan’s Nikkei Stock Average JP:100000018 -0.03% ended fractionally lower, while South Korea’s Kospi KR:SEU -0.25% slipped 0.3%. The performance followed a generally weak set of Chinese data released on Sunday, including industrial production, fixed asset investment in non-rural areas and a measure of wholesale prices. Data released Monday also showed the country’s trade surplus widened more than forecast in August, due to a surprise fall in imports. Read more on China's trade surplus. “August activity data in China confirm our view of a weakening economy in the third quarter, with monetary easing still on the table, especially if growth slides further,� Barclays Capital strategist Jian Chang said. “Approval of more infrastructure projects should offset weakening confidence, and further fiscal-policy support could be implemented in the coming months,� Chang said. Chinese authorities announced a slate of new infrastructure projects last week designed to support the slowing economy. Read more on Chinese stimulus plans. Expectations that the Federal Reserve would launch fresh monetary easing measures later this week also kept investor sentiment supported. Major movers Several stocks and sectors were supported by hopes of stimulus from the world’s two largest economies. The resources sector in particular was also aided by sharp gains on commodity markets on Friday. In Sydney, iron-ore producer Fortescue Metals Group Ltd. AU:FMG +7.25% FSUGY +15.32% rallied 7.3%, diversified miner Rio Tinto Ltd. AU:RIO +4.21% RIO +6.76% RIO +6.76% UK:RIO +2.90% jumped 4.4%, and copper producer PanAust Ltd. AU:PNA +9.61% surged 9.6%. Shares of Jiangxi Copper Co. CN:600362 +2.89% HK:358 +1.91% JIXAY +5.79% rose 1.9% and Aluminum Corp. of China Ltd. ACH +3.34% HK:2600 +2.00% CN:601600 +1.52% added 2% in Hong Kong; in Shanghai, the stocks rose 2.6% and 1.9%, respectively. In Tokyo, shares of Hitachi Construction Machinery Co. JP:6305 +2.12% HTCMY +1.21% gained 2.1% and Komatsu Ltd. KMTUF +3.09% JP:6301 +3.20% added 3.2%, while Fanuc Corp. JP:6954 +1.31% FANUY +0.99% advanced 1.3%. But those gains were offset by losses for some blue-chip exporters in the wake of the yen’s gains after disappointing U.S. nonfarm payrolls data Friday. Sharp Corp. JP:6753 -1.94% SHCAY +1.95% lost 1.9%, Nikon Corp. JP:7731 -2.92% NINOY +0.16% dropped 2.9%, and Canon Inc. JP:7751 -1.39% CAJ +1.86% fell 1.4%. Data released earlier in the day showed a downward revision to April-June economic growth and a trade deficit for July also weighed on sentiment. Read more on Japanese GDP. On the upside, Nomura Holdings Inc. JP:8604 +2.88% NMR +1.44% NRSCF -11.81% climbed 2.9% after its chief executive told the Nikkei business daily that the brokerage plans to trim its European operations and focus more on its Asian business. Read more on Nomura CEO’s reported comments. Virginia Harrison is a MarketWatch reporter based in Sydney. Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.

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