Asian stocks rise on optimism over China stimulus
Shares in Japan and South Korea gained, while futures showed the Hang Seng Index is poised to jump more than 3% at the open. Iron ore advanced thanks to Beijing’s announcement as the country dominates demand for most metals. The Nasdaq Golden Dragon China Index, which tracks the biggest Chinese stocks in the US, surged 8.5% in its strongest gain since September.
China’s Politburo vowed to embrace a “moderately loose” strategy for monetary policy in 2025, marking its first major shift in stance since 2011. The top leaders pledged to take a “more proactive” approach on fiscal policies, stabilizing property and stock markets, while promising to “forcefully lift consumption.” Investors will now shift focus to China’s annual closed-door Central Economic Work Conference, due later this week.
The Politburo statement send a “positive message regarding household consumption,” Geoffrey Yu, a strategist at BNY said in an interview with Bloomberg Television. A drop in Chinese 10-year bond yields may have increased the urge among Beijing’s policymakers to lift expectations, he said.
Separately, manufacturers in China have begun limiting sales to the US and Europe of key components used to build unmanned aerial vehicles that have become a vital part of Ukraine’s defense. The moves are a prelude to broader export restrictions on drone parts that western officials expect Beijing to enforce in the new year, according to people who asked not to be identified.
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