Asia: Most indices higher but ASX falls on commodities price decline

Asian stocks enjoyed a positive start to the week with boosted by China's hints on introducing further economic stimulus measures. However, Australian stocks declined on weaker commodities prices.

Shanghai composite index rose 2.59% after China’s central bank governor Zhou Xiaochuan hinted at further economic stimulus measures over the weekend.

He said, the country needs to be vigilant on inflation as its growth has slowed "a bit too sharply". Chinese Premier Xi Jinping also said during the weekend that the 7% growth target is impressive giving the economy's resilience.

Jasper Lawler, market analyst at CMC Markets, said: "Remarks from Chinese officials in the government and central bank that imply further monetary easing and fiscal stimulus have fuelled another big rally in Asian equities which is following through to a big open in the US."

After the close of markets, the People's Bank of China (PBoC) said it would lower the downpayments people with an existing mortgage pay on their second home loan to 40% from 50%.

The PBoC added it wanted to "support households" in their home purchases.

Hong Kong's Hang Seng was also up 1.51%. Elsewhere in Japan, Nikkei 225 gained 0.65% after opening lower due to weaker data. Industrial production fell 3.4% in February from a 3.7% increase the month before.

However, Australian stocks declined as investors factored in a possible interest rate cut by the Reserve Bank of Australia after Easter.

ASX index fell 1.25% driven lower by mining stocks as bearish trends in the wider commodities market hit home. Gold for April delivery dropped 0.5% to $1,199.80 an ounce. Brent futures fell 5.1% to $56.20 at the end of Friday’s session, while ICE WTI futures came in 5.5% lower at $48.58 per barrel.

IG analyst Chris Beauchamp said: “The rally in precious metals has been stopped in its tracks, mostly due to the expectation of further US dollar strength but also to a perception that the gains of the past week or more were not much more than an oversold bounce that got a little carried away.”

As a result, mining group BHP Billiton fell 2.11% and its rival Rio Tinto lost 1.24%. Aussie oil and gas company Santos fell as much as 6.77%

In other corporate news, China Eastern Airlines gained 3.69% as it posted a 45% increase in profit during 2014 thanks to lower fuel prices and air traffic growth.

In Japan, Just Retailing jumped 2.66% but oil company Inpex fell 2.46%.

With additional reporting by Ishaq Siddiqi