Asian stocks muted as Fed looms, China rallies on stimulus talk
Investing.com-- Most Asian stocks kept to a tight range on Tuesday as markets awaited more cues from a Federal Reserve meeting this week, while Chinese markets rose sharply after top officials promised more policies to support growth.
Anticipation of a raft of quarterly earnings in the coming weeks also kept sentiment towards Asian markets muted, as investors awaited more cues on how regional firms were navigating slowing economic growth and business activity.
Markets were also on edge over upcoming central bank meetings in the U.S., Europe and Japan.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes were among the best performing Asian bourses for the day, rising 2.2% and 1.6%, respectively. Hong Kong’s Hang Seng index surged over 3%, buoyed by locally-listed Chinese stocks.
The gains come after China’s Politburo- the top decision-making body of the Communist Party- promised more policy measures to support slowing economic growth in the coming months.
Measures will be aimed at the country’s biggest growth engines- real estate and private consumption, both of which have deteriorated substantially over the past three years.
A mix of low valuations and optimism over a rebound sparked heavy buying into Chinese stocks on Tuesday, particularly into the real estate sector. Majors such as Longfor Properties (HK:0960) and Country Garden Services (HK:6098) rallied over 20% each, and were the best performers on the Hang Seng.
Optimism over China helped spur some gains in other Asian markets. Australia’s ASX 200 rose 0.3%, while South Korea’s KOSPI rose 0.1% as data showed that the country’s economy grew slightly more than expected in the second quarter.
Indonesian stocks rose 0.5%, with focus turning to an
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