China shares rally, G20 summit looms - what's moving markets
investing.comInvesting.com -- Chinese shares jump as traders bet that recent U.S. unemployment figures may convince officials at the Federal Reserve to keep interest rates steady this month, while markets awaited more possible stimulus measures from Beijing. Elsewhere, international leaders prepare to attend the G20 summit in India later this week, although the gathering will not feature Chinese President Xi Jinping.
1. Chinese stocks surge
Shares in China rallied on Monday, buoyed by a slow drip of stimulus measures by Beijing and U.S. labor market figures which bolstered predictions that the Federal Reserve will not raise interest rates at its next policy meeting.
The Shanghai Shenzhen CSI 300 and Shanghai Composite indices both jumped by more than 1% each in a day of relatively thin trading stemming from the U.S. end-of-summer holiday.
Hong Kong's Hang Seng index, meanwhile, climbed by more than 2%, fueled by news that Country Garden Holdings had received approval from its bondholders to extend some debt deadlines. The stock rose by over 15%, making it one of the top performers on the Hang Seng, as hopes grew that the embattled property developer would be able to avert a possible default.
Monday's stock market gains were also underpinned by Friday's U.S. jobs data which showed that the unemployment rate ticked higher while wage growth cooled. Markets are betting the Fed will keep interest rates on hold at their meeting later this month — a potential relief for Asian shares that have been battered by elevated rates over the past year.
2. Oil prices choppy
Oil prices held near three-week highs in choppy trading amid optimism that top crude producers will agree to further output cuts that could keep global supplies tight.
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