U.S. stock indices rose on Monday as several disappointing economic reports suggested that the Federal Reserve will postpone a rate hike.
The Dow Jones Industrial Average rose 304.06 points, or 1.9%, to 16,776.43. The S&P 500 gained 35.69, or 1.8%, to 1,987.05 (all of its 10 sectors closed higher). The Nasdaq Composite Index added 73.49, or 1.6%, to 4,781.26.
A report by the Institute for Supply Management showed that the pace of growth in the U.S. services sector slowed in September. The ISM Non-Manufacturing index declined to 56.9 last month from 59 in August, while economists had expected a reading of 58. Three out of four sub-indices fell, while the employment sub-index rose. Despite a weaker-than-expected result the index remained above the 0 threshold, which separates expansion and contraction.
This morning in Asia Hong Kong Hang Seng climbed 0.12%, or 27.23, to 21,881.73. The Nikkei rose 1.31%, or 236.51, to 18,242.00. Markets in China are on holiday until Wednesday.
Asian indices advanced amid expectations that the Federal Reserve will not raise rates this year. Stable oil prices also supported stocks.
Japanese stocks rose on news that the U.S., Japan and 10 other countries reached an agreement on Trans Pacific Partnership. These 12 countries account for 40% of the world economy. The deal includes tariff barrier cutting, investor protection and other aspects.