Chinese benchmark Shanghai Composite index .SSEC and the blue-chip CSI300 index .CSI300 advanced 0.6% and 0.1%, respectively, on Monday.
China's finance ministry will lead a combined capital injection of $54 billion into state-owned insurers and banks, the companies said on Sunday, in a coordinated push by Beijing to shore up capital across its financial system.
Currencies in the emerging market were mostly higher. The greenback was subdued, despite getting a boost in the prior sessions, as bets of a U.S. Federal Reserve rate hike rose after stronger-than-expected jobs data last week.
Investors will now turn to U.S. consumer inflation data on Friday to further assess the trajectory of the central bank's monetary path.
Traders currently price in a 58% chance of a hike by the central bank when it meets next week, up from about 50% before the data, according to CME's FedWatch Tool.
The broader EM currencies gauge .MIEM00000CUS added 0.2%, extending its stay at record levels. The Korean won KRW=KFTC added to its recent gains, up 0.4% to its strongest level in nearly two years.
Stocks in Turkey added 0.8%. Turkey's government projects gross domestic product growth accelerating to 5% by 2029, up from 3.3% forecast for this year, Vice President Cevdet Yilmaz said on Sunday. The lira TRYTOM=D4 firmed.
The National Bank of Poland (NBP) is expected to keep interest rates unchanged on Wednesday, a Reuters poll showed, with analysts pointing to rising inflation and loose fiscal policy as reasons for caution.
Local equities .WIG rose 0.3%, while the zloty EURPLN= weakened 0.1% against the euro.
Elsewhere, S&P on Friday cut Senegal's long-term foreign-currency rating to "CC" from "CCC+", citing a high likelihood that the government's planned debt restructuring will result in losses for foreign-currency creditors.
U.S. peace envoys Jared Kushner and Steve Witkoff heralded new momentum in peace talks after meeting Ukrainian President Volodymyr Zelenskiy in Kyiv on Sunday as Washington renewed its push to end Russia's war in Ukraine.
EEM•
