Stock markets mostly rose on Monday after last week's global surge, helped by China's loosening of COVID rules and plans to help its property sector.
The dollar advanced against major rivals as traders urged caution over expectations that the Federal Reserve would pull back from massive US interest hikes as inflation cools in the world's biggest economy.
Presidents Joe Biden and Xi Jinping meanwhile voiced hope on Monday that the United States and China can manage growing differences and avoid conflict as they met for the first time in more than three years.
"The burst of euphoria which erupted... at the end of last week is ebbing away after fresh warnings that the fight against inflation is still a hard slog yet to be won," noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
The burst of euphoria which erupted... at the end of last week is ebbing away after fresh warnings that the fight against inflation is still a hard slog yet to be won- Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown
Sentiment won a lift from China, which is relaxing some of its strict COVID-19 restrictions that have hammered growth in the world's second largest economy.
Authorities have also reportedly unveiled a 16-point plan to support the beleaguered property sector, a major component of the country's economic engine. The industry has come under immense pressure since China imposed a number of restrictions in 2020 aimed at reeling in debt as major developers teetered on the brink of collapse.
The latest moves indicate that China's leadership is beginning to focus on supporting the economy, a crucial driver of global growth, according to analysts.
Nomura's Lu Ting warned, however, that the "measures may have little direct impact on stimulating home purchases".
Hong Kong's stock exchange ended more than one per cent higher Monday – having soared over seven per cent on Friday.
Property firms were the best performers with Country Garden leading the way with a massive 40 per cent jump.