Asian stocks surge as China supports equity markets
Investing.com-- Most Asian stocks rose sharply on Monday, with Chinese shares in the lead after the country rolled out more measures to support its battered equity markets, while focus turned to key indicators from the world's largest economies this week.
Optimism over China also helped markets somewhat look past hawkish signals from Federal Reserve Chair Jerome Powell, who said on Friday that U.S. interest rates could potentially rise further to curb sticky inflation.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both surged about 2.4%, while Hong Kong’s Hang Seng added 1.8% on Monday. The three were the best performers in Asia.
China over the weekend announced new measures to draw investors back into its battered stock markets, by most notably halving the stamp duty on stock trades. Chinese exchanges were also seen lowering their margin requirements.
The move saw Chinese indexes jump from their weakest levels for the year, although analysts warned that the rally was likely to be short-lived.
Property stocks were among the top performers as Beijing also loosened some mortgage restrictions.
China Evergrande Group (HK:3333) was the sole exception among its peers, with the real estate developer tumbling over 80% after its shares resumed trading in Hong Kong following a 17-month break.
Dealmaking activity also boosted some Chinese stocks, with beleaguered property developer Country Garden Holdings (HK:2007) up nearly 8% after it sold a stake in a Guangzhou project to raise its cash levels.
Electric car maker BYD Co (HK:1211) rose 2.7% after its unit entered a deal to buy the Chinese mobility business of U.S.-based manufacturing firm Jabil Inc.
Optimism over China boosted broader Asian markets, with
Read more on investing.com
