Japan’s Nikkei 225 leads gains in Asia markets ahead of BOJ meeting; China shares rise after data

Japan’s Nikkei 225 index led gains in Asia-Pacific markets on Monday, while China shares extended gains after data showed its economy kicked off the year on a strong note.

The U.S. Federal Reserve will start its Federal Open Market Committee meeting on Tuesday. A Reuters poll of economists is expecting the Fed to hold its benchmark interest rates steady at 5.25% to 5.5%.

In Asia, the Reserve Bank of Australia is expected to keep its cash rate steady at 4.35% when it concludes its meeting on Tuesday.

In contrast, a Reuters poll expects the Bank of Japan to exit its negative interest rate policy and lift its benchmark rate to 0% from -0.1% when it makes its announcement on Tuesday.

Japan’s Nikkei 225 rose 2.2%, while the Topix climbed 1.6%.

In Europe, the Bank of England is expected to keep rates unchanged at 5.25%.

Data showed retail sales and industrial production in China rose more than expected in the first two months of the year. The unemployment rate for cities was 5.3% in February.

China’s CSI 300 index rose 0.49% after the data.

Hong Kong’s Hang Seng index pared declines to trade near the flatline after opening nearly 0.3% lower.

On Friday in the U.S., all three indexes fell on Friday as inflation concerns remain front and center ahead of the Federal Reserve’s policy meeting.

The S&P 500 lost 0.65%, while the Dow Jones Industrial Average dipped 0.49%, while the Nasdaq Composite slipped 0.96%.

— CNBC’s Brian Evans and Alex Harring contributed to this report