Exciting news from Asia as shares rally once again, fueled by reports of China’s massive plans to inject capital into state-run banks. The Chinese government is set to spend 1 trillion yuan ($142 billion) to help rebuild these financial institutions, in a move to boost their margins and profits.
On top of this, the government announced “living allowances” for the poor ahead of the National Day holidays, aiming to stimulate consumer spending. In light of the challenging economy, Beijing also unveiled measures to revive the property sector, like reduced interest rates and down payment requirements.
As a result, Asian markets are thriving. The Hang Seng in Hong Kong surged 3.5%, while the Shanghai Composite index added 3.3%. The Nikkei in Tokyo rose 2.8%, and South Korea’s Kospi jumped 2.9%. Investors are riding high on renewed optimism over China’s stimulus push.
In the US, the S&P 500 and Dow Jones slipped, but Nasdaq edged up slightly. Amidst concerns about the job market and inflation, the Federal Reserve is anticipated to make a big cut to interest rates at its next meeting.
Overall, the market outlook is positive, with global factors like crude oil prices and currency exchange rates also under scrutiny.
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