Asian Shares Rise as China Signals Further Support for Slowing Economy

 

 

 

Asian markets showed resilience on Monday as stocks in China surged over 1% following discussions by the finance minister hinting at the necessity of additional stimulus measures for the slowing economy.

 

 

While the government explores avenues to bolster economic growth, the lack of specific details regarding a substantial stimulus plan has left investors and analysts anticipating a potential plan valued up to 2 trillion RMB, approximately $280 billion.

 

 

Stephen Innes from SPI Asset Management remarked on the cautious optimism prevalent in the market, highlighting the importance of tangible actions over mere promises in Chinese policy briefings. 🇨🇳The Shanghai Composite index climbed by 1.7% to 3,271.06, with Shenzhen's market also gaining 1.9%. Conversely, 🇭🇰Hong Kong's Hang Seng index dipped by 0.4% to 21,164.93, while 🇯🇵Tokyo's markets remained closed for a public holiday. 🇰🇷South Korea's Kospi surged by 1% to 2,622.43, and 🇦🇺Australia's S&P/ASX 200 saw a 0.5% increase to 8,253.60.

 

 

 

🇸🇬In Singapore, the economy exhibited robust performance, with a year-on-year growth of 4.1% in the third quarter of 2024, surpassing the 2.9% growth from the prior quarter. The Ministry of Trade and Industry (MTI) advanced estimates revealed a 2.1% uptick in GDP on a seasonally adjusted quarterly basis, a significant improvement from the 0.4% growth registered previously. Notable sectoral growth includes a 7.5% year-on-year increase in the manuf

acturing sector, contrasting the 1.1% decline in the previous quarter, and a 3.1% expansion in the construction sector, albeit slower than the 4.8% growth in the prior quarter.

 

 

Singapore shares commenced trading positively on Monday, with the FTSE Singapore Straits Time Index (STI) rising by 0.30% to 3584.46 as of 9:10 am local time.

 

 

🇲🇾In Malaysia, blue-chip stocks like Public Bank (PBBANK, 1295) witnessed an uptick, propelling the market to breach 1640 points in the morning session. The FTSE Bursa Malaysia KLCI climbed 3.62 points to open at 1637.17 and briefly touched 1642.56 before retracting slightly to close at 1634.90 by the end of the trading session.