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· Asian stocks edged higher on Monday amid a cautious mood as investors pinned their hopes on expected global stimulus to support slowing growth in the world’s major economies.

Global equity markets also received a lift after the Chinese central bank’s move on Friday to cut how much cash banks must hold in reserve, releasing liquidity to shore up an economy hit by the Sino-U.S. trade conflict.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.2%. The Shanghai Composite Index .SSEC was up 0.6%

· Japanese shares hit a 5-1/2-week closing high on Monday, supported by hopes that stimulus from the world’s largest economies would help stave off a global recession.

The benchmark Nikkei average ended 0.56% firmer at 21,318.42, while the broader Topix rose 0.91% to 1,551.11 - their highest closing levels since Aug. 2.

“Three big worries for financial markets - namely, the U.S.-China trade war, Brexit jitters and Hong Kong protests - have retreated and contributed to the risk-on sentiment,” said Masayuki Kubota, chief strategist, Rakuten Securities.

Global equity markets received a lift after China’s central bank said on Friday it was cutting the amount of cash that banks must hold as reserves, releasing liquidity to shore up a slowing economy dragged down by the Sino-U.S. trade war.

Risk sentiment also improved as U.S. Federal Reserve Chairman Jerome Powell said on Friday that the central bank will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest economy.

However, broader stock market gains were tempered in the wake of lacklustre economic data - U.S. job growth slowed more than expected in August, while earlier on Monday data showed Japan’s economy grew at a slower pace than initially estimated in the second quarter.

· Mainland Chinese stocks are outperforming their offshore-listed peers as domestic investors bet the country's economy will withstand the trade war with the US.

The Shanghai Composite Index has rallied more than 20 per cent this year, compared with a 3 per cent advance by the Hang Seng China Enterprises Index in Hong Kong. The Shanghai measure is trading near its highest level relative to the H-share gauge since late 2017.

The Shanghai Composite added 0.4 per cent as of 10am local time while the Hang Seng China gauge was little changed.

· European stocks traded mixed Monday morning as investors monitor ongoing political chaos in the U.K. and cautious hopes for policy stimulus from the world’s major economies after a series of weak data releases

The pan-European Stoxx 600 hovered around the flatline in early trade, oil and gas stocks adding 0.9% after reports of possible further U.S. sanctions on purchasers of Iranian oil, while the food and beverage sector slid 0.4%.