(Bloomberg) — Chinese stocks jumped, with the onshore benchmark gauge poised for its best day in over three months, as anticipation grew for Beijing to bolster its struggling economy.
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The CSI 300 Index rose as much as 2% on Wednesday, the most since April 15, with healthcare and information technology sectors leading the gains. The Hang Seng China Enterprises Index also jumped as much as 2.4%, ranking among the region’s top performers.
The rally in local shares followed a statement from the Politburo meeting this week, which pledged to prioritize boosting consumer spending and mentioned “counter-cyclical adjustments,” suggesting further easing measures.
“Probably some investors are now looking at it more from the half-full angle in anticipation of more counter-cyclical polices,” said Redmond Wong, a market strategist at Saxo Capital Markets in Hong Kong. Expectations that the Federal Reserve meeting later Wednesday will likely signal a September rate cut also boosted sentiment, he said.
Moreover, initial signs indicate that China’s so-called national team is again supporting the equity market. Contracts typically bought by state-related fund managers rose by 2% in some cases, an unusual move during the morning session, likely prompted by investors’ initial disappointment with the Politburo meeting reports, market participants said.
–With assistance from Winnie Hsu.
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