Published: 8/28/2023 4:37 AM ET
Asian shares advanced on Monday as investors cheered China’s stimulus to ease market unrest and drive economic growth. Chinese authorities announced a slew of measures over the weekend to bolster the country’s equity markets and fuel an increase in spending.
The measures included a 50 percent reduction in stamp duty on stock trades and a slower pace of initial public offerings. China’s securities regulator also approved the launch of 37 retail funds. Meanwhile, investors shrugged off data showing that profits at China’s industrial firms extended a slump into a seventh month.
The dollar fell against a basket of currencies ahead of key U.S. jobs and inflation readings due this week.Gold was little changed, defying Fed Chair Jerome Powell’s hawkish tone on interest rates.
Oil prices edged higher as China’s latest stimulus measures helped to alleviate fuel demand concerns. Chinese shares climbed after authorities cut stamp duty and margin ratios for leveraged trades. The benchmark Shanghai Composite index settled 1.13 percent higher at 3,098.64.Hong Kong’s Hang Seng index rose 0.97 percent to 18,130.74. China Evergrande Group shares plummeted almost 79 percent as trading resumed following a 17-month suspension. According to its 2023 interim report, the property developer’s net loss for the six-month period stood at $5.4 billion. Japanese shares rallied, underpinned in part by the persistent weakness of the yen.
The yen hovered close to its lowest in over nine months after Bank of Japan Governor cited inflation concerns to support ultra-easy monetary policy.
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