(Bloomberg) -- Asian stocks saw gains Monday, as traders weighed further stimulus from China amid weak economic data. Treasuries and the dollar were steady.

Shares in South Korea outperformed with the advance more modest in Japan, China and Hong Kong. On Friday, the People's Bank of China said it will cut the amount of cash banks must hold as reserves to the lowest level since 2007, injecting liquidity into the economy. The yuan dipped. S&P 500 futures and Treasuries were steady, after Federal Reserve Chairman Jerome Powell's last speech before next week's policy meeting cemented views for another interest-rate reduction.

As the U.S.-China trade war rumbles on with more high-level talks expected next month, data over the weekend showed China's exports unexpectedly contracted in August and last week's U.S. employment report was weaker than many forecast. With expectations already running high for central banks around the world to offer more support to economies, traders remain on edge.

"There has been a tremendous rally in bonds and the central banks are the key determinant of what's going to happen with the rates market," Frances Hudson, global thematic strategist for multi-asset investing at Aberdeen Standard Investments, told Bloomberg TV. "With equities there is still an element of self-determination."

Elsewhere, the pound was little changed with Boris Johnson not giving up on his Brexit plan, despite the latest Tory defection. The British Prime Minister remains committed to pulling the U.K. out of the EU by the end of next month and may challenge legislation requiring him to ask for a delay if there's no deal by Oct. 19, Foreign Secretary Dominic Raab said.

Meantime, Typhoon Faxai made landfall near Tokyo early Monday morning, causing widespread disruptions to commuters and cutting off power to around 90,000 homes. In Hong Kong, small pockets of demonstrators on Sunday set fires, vandalized subway stations and set up barricades downtown. Tens of thousands marched peacefully to the U.S. consulate to appeal for help from President Donald Trump.

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