China
Chinese stocks rally from worst week since late July
Olumide Adesina•Monday, October 14, 2024•1 min read
Chinese markets rallied strongly from their worst week since late July as Beijing reiterated its resolve to bolster the economy with a fiscal stimulus plan.
The CSI 300 Index ended Monday’s session up 1.9%, its biggest increase over a week, despite losses earlier in the day.
Chinese developers index jumped more than 4% before moderating the increase to just over 1%.
The CSI 300 Index, a gauge of onshore stocks, had its biggest weekly drop since late July last week, while the Australian and New Zealand dollars, developed market currencies that serve as indicators of sentiment toward China, sank for the second consecutive week.
The onshore stock benchmark posted a 1.7% gain. The yuan declined along with oil, reflecting traders’ skepticism that Beijing’s latest policies would be enough to boost economic expansion. European stock futures were steady as the US and euro stock futures declined.
China’s Finance Minister Lan Fo’an vowed further support for the real estate sector at a much-anticipated weekend conference, but he did not reveal the headline monetary stimulus figure. Attention is now turning to the impending major policy briefing from the Communist Party-controlled budget-supervising parliament in the future on further support.
The National People’s Congress, China’s legislature, must approve several fiscal initiatives, including government bond issuance. Analysts and investors will monitor the Congress’s standing committee meeting in late October for clues regarding potential additional stimulus measures.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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