Asian stocks extend post-Fed rally, China data offers some support
Investing.com-- Most Asian stocks rose sharply on Friday, extending recent gains following dovish signals from the Federal Reserve, while some positive economic readings from China also aided sentiment.
Technology-heavy indexes were by far the best performers for the day, as expectations of U.S. interest rate cuts in 2024 drove down Treasury yields. Hong Kong’s Hang Seng index was the biggest benefactor from this trade, up 3.5% on strength in heavyweight tech stocks.
Regional stocks also took positive cues from a strong overnight close on Wall Street, with U.S. stock benchmarks trading close to record highs tracking a dovish outlook from the Fed.
Broader Chinese markets also advanced, with the bluechip Shanghai Shenzhen CSI 300 index up 1%, while the Shanghai Composite added 0.6% after data showed Chinese industrial production grew more than expected in November.
Chinese stocks also saw a heavy degree of bargain buying, with the CSI 300 recovering from a near five-year low. Sentiment towards China was battered by a string of weak economic readings in recent months, as a post-COVID economic recovery failed to materialize.
Weak retail sales and fixed asset investment data pointed to continued weakness in some aspects of the Chinese economy.
But Beijing remained committed to its monetary stimulus efforts. The People’s Bank of China injected about 1.45 trillion yuan ($200 billion) into the economy through its medium-term lending facility on Friday.
The move also indicated that the PBOC planned to keep its loan prime rate unchanged at record lows next week.
Broader Asian markets advanced, extending gains from the prior session as the Fed said it was done raising interest rates will cut rates by a deeper margin in 2024. The
Read more on investing.com
