London
17 °C
Manchester
Glasgow
18 °C
Dublin
15 °C
Belfast
Washington
Denver
Atlanta
Dallas
Houston Texas
New Orleans
El Paso
Phoenix
Los Angeles
17 °C
26 °C
6 °C
7 °C
15 °C
28 °C
25 °C
27 °C
Asian stock markets lead rally on China stimulus / Photo: DALE DE LA REY - AFP
NYSE - LSE
| RBGPF | 8.6% | 62.36 | $ | |
| SCS | 0.88% | 13.125 | $ | |
| CMSC | 0.04% | 25.08 | $ | |
| AZN | 0.1% | 77.22 | $ | |
| NGG | 0.11% | 70.56 | $ | |
| BTI | 0.57% | 38.119 | $ | |
| RIO | 4.31% | 67.49 | $ | |
| RELX | -1.13% | 48.315 | $ | |
| BCE | -0.19% | 35.035 | $ | |
| VOD | -0.14% | 10.096 | $ | |
| BP | 0.59% | 33.055 | $ | |
| JRI | 0.52% | 13.37 | $ | |
| BCC | 0.14% | 141.855 | $ | |
| CMSD | 0.08% | 25.025 | $ | |
| GSK | 0.26% | 40.965 | $ | |
| RYCEF | -0.86% | 7 | $ |
Asian stock markets lead rally on China stimulus
Stock markets and oil prices rallied Tuesday after China's central bank unveiled fresh stimulus measures to kickstart growth in the world's number two economy.
After a string of weak data that has fanned worries about the financial health of the country, China's central bank said it would cut a slew of rates to boost growth.
Shanghai and Hong Kong stock markets closed up more than four percent, as China unveiled some of its boldest measures in years as it faces a prolonged property-sector debt crisis, continued deflationary pressure and high youth unemployment.
The Paris stock market led the way in Europe with a gain of 1.6 percent in early afternoon deals, with the luxury fashion sector boosted by hopes of rebounding demand in China.
Frankfurt was up 0.7 percent, brushing off news that German business confidence deteriorated for a fourth straight month in September, according to a closely-watched survey.
London edged up 0.3 percent, helped by strong gains to mining groups on the news out of commodities-hungry China.
Oil prices won more than two percent. China is the world's top importer of crude.
China's measures "should be good news for commodity producers, stocks with links to the Chinese and Hong Kong property market, and European companies that sell to the Chinese consumer", said Kathleen Brooks, research director at broker XTB.
"This package could help the beleaguered German luxury car sector along with French luxury goods houses," she added.
Julian Evans-Pritchard, head of China economics at Capital Economics research group, said the action by Beijing represents "the most significant... stimulus package since the early days of the pandemic".
But he warned "it may not be enough", adding a full economic recovery would "require more substantial fiscal support than the modest pick-up in government spending that's currently in the pipeline".
Tuesday's gains for equities came after Wall Street's Dow and S&P 500 indices kicked off the week with fresh record highs.
It extends a positive run after the US Federal Reserve last week enacted its first interest rate cut in more than four years.
Traders are awaiting the release Friday of the personal consumption expenditures index -- the Fed's preferred inflation metric -- hoping for an idea about its next interest-rate move.
- Key figures around 1100 GMT -
London - FTSE 100: UP 0.3 percent at 8,288.07 points
Paris - CAC 40: UP 1.6 percent at 7,627.49
Frankfurt - DAX: UP 0.7 percent at 18,983.00
Tokyo - Nikkei 225: UP 0.6 percent to 37,940.59 (close)
Hong Kong - Hang Seng Index: UP 4.1 percent to 19,000.56 (close)
Shanghai - Composite: UP 4.2 percent to 2,863.13 (close)
New York - Dow: UP 0.2 percent at 42,124.65 points (close)
Euro/dollar: UP at $1.1128 from $1.1113 on Monday
Pound/dollar: UP at $1.3368 from $1.3345
Dollar/yen: UP at 143.96 yen from 143.57 yen
Euro/pound: DOWN at 83.26 pence from 83.27 pence
Brent North Sea Crude: UP 2.1 percent at $75.47 per barrel
West Texas Intermediate: UP 2.2 percent at $71.94 per barrel
(K.Jones--TAG)
