Asia: Stocks mostly higher amid speculation of another cut in China interest rates

Asian stocks were mostly higher following reports that China may cut interest rates again.

China’s central bank is said to be set to cut rates and loosen lending restrictions amid concerns about falling inflation, according to Reuters.

The news follows the People’s Bank of China’s (PBoC) decision on Friday to slash rates for the first time in two years.

The PBoC said the move was designed to help small firms and protect depositors.

“Asian markets were today still feeling the benefits of Friday's unexpected interest rate cut in China as they closed higher,” said IG.

Hong Kong’s Hang Seng index gained 1.95% while the Shanghai composite increased 1.85%.

Japan’s Nikkei rose 0.33% as the yen weakened against the dollar to support exporters.

In company news, China Vanke surged in Hong Kong, pacing gains among mainland developers.

BHP Billiton’s stocks jumped after saying it will cut costs and restructure their executive ranks.

Halla Visteon Climate Control Corp. slumped after reports that South Korean buyout fund Hahn & Co. is considering purchasing shares in the company from US auto-parts maker Visteon Corp.