Asia-Pacific Markets Rally as China Stocks Surge on Stimulus Measures
Global Markets:
- Asian Stock Markets : Nikkei up 0.17%, Shanghai Composite up 0.94%, Hang Seng up 1.15% ASX down 0.33
- Commodities : Gold at $2679.35 (0.14%), Silver at $31.10 (-0.94%), Brent Oil at $74.18 (-0.56%), WTI Oil at $71.16 (-0.47%)
- Rates : US 10-year yield at 3.742, UK 10-year yield at 3.942, Germany 10-year yield at 2.135
News & Data:
- (USD) CB Consumer Confidence 98.7 vs 103.9 expected
- (USD) Richmond Manufacturing Index -21 vs -13 expected
Markets Update:
China’s stocks led gains in the Asia-Pacific markets on Wednesday, boosted by new stimulus measures from Beijing. Mainland China’s CSI 300 climbed 2.13%, driven by consumer cyclicals and industrials, while Hong Kong’s Hang Seng index went as high as 2%, supported by energy and basic materials sectors. The Hang Seng Mainland Properties index also rose by 1.8%.
Chinese markets rallied earlier after the central bank unveiled a series of economic support measures, with the Hang Seng Index having its best day in seven months and the CSI 300 marking its largest one-day gain in over four years. On Wednesday, the People’s Bank of China cut the medium-term lending facility rate to 2%, down from 2.3%, marking the second rate reduction in three months.
The offshore yuan briefly strengthened, breaking the 7.00 level against the U.S. dollar for the first time since May 2023. Meanwhile, Australia’s inflation was in focus as the consumer price index rose 2.7% year on year in August, aligning with economists’ expectations.
Australia’s S&P/ASX 200 saw a slight losses as session went, while Japan’s Nikkei 225 inched up by 0.21%, and South Korea’s Kospi remained nearly flat.In the U.S., the S&P 500 hit a fresh record, gaining 0.25%, with the Dow Jones adding 0.2%. Nvidia shares surged almost 4% after news that CEO Jensen Huang had concluded his stock sales.
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