Asian stocks gain amid China stimulus optimism

Asian stock markets continued their upward trajectory on Thursday, buoyed by persistent optimism surrounding China’s aggressive stimulus package.

The MSCI’s broadest index of Asia-Pacific shares outside Japan surged more than one per cent, reaching a two-year high. Japan’s Nikkei soared by 2.4 per cent, while Hong Kong’s Hang Seng Index and China’s CSI300 index also posted gains.

Contributing to the positive sentiment, Bloomberg News reported that China is considering injecting up to 1 trillion yuan ($142.39 billion) into its largest state banks to bolster their capacity to support the struggling economy.

The Australian and New Zealand dollars gained ground as investors sought exposure to China-linked assets. However, the greenback received a boost from month-end flows.

Oil prices increased slightly, with Brent crude futures up 0.27 per cent to $73.66 per barrel and US crude rising 0.2 per cnet to $69.82 per barrel.

Spot gold remained stable at $2,659.56 per ounce after reaching a record high on Wednesday.

Attribution: Reuters

Subediting: M. S. Salama