Asia Higher On Optimism Over China

Asia Higher On Optimism Over China

Asian stock markets rally on China’s soothing words

US stock markets had a mixed result yesterday, with the being largely discounted. However, Asia markets are off to a lively start after China officials called a meeting with bankers and assured them that the recent clampdowns were targeted and not part of a broader strategy. Temporary abating of China risk has been enough to greenlight a broad rally across the region.

The was unchanged yesterday, while the rose by 0.70%, while the fell by 0.37%. That price action continues in Asia with futures flat, but and futures easing. In Asia, the has climbed by 0.65%, with the rising 0.30%. China markets welcomed the governmental words yesterday and, after a few torrid sessions, are all higher now. The has rallied 1.25%, with the jumping by 1.45% and Hong Kong, heavy with China-tech, leaping 2.40% higher.

Regionally, Singapore has risen 0.60% as the MAS greenlights a resumption of full bank dividends. The outlook is bright for the banking sector, which many consider a somewhat boring industry. The major banks in Singapore are well capitalised, the city-state is well run and the vaccination rollout is moving at breakneck speed.

Kuala Lumpur is 0.30% higher, while Taipei has risen 0.70%. Jakarta is flat while Bangkok bucks the trend, falling 0.60% after returning from holiday. Australia is also higher, with the and rising by 0.40%.

The upbeat mood in Asia, and some relief that the China clampdown may be done, for now, should be enough to lift European markets at the open. The US releases Advance and , with both expected to show massive gains. Unless Amazon (NASDAQ:) disappoints, it is hard to see the US data derailing the rally on Wall Street either, now that the FOMC is out of the way.

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