China stimulus boosts Asian markets on Wednesday

Asian stocks rallied on Wednesday, buoyed by China’s announcement of new stimulus measures to bolster its struggling economy.

The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes surged by around three per cent, while Hong Kong’s Hang Seng index added 2.5 per cent.

The People’s Bank of China unveiled a series of measures, including lower bank reserve requirements and mortgage rates.

Additionally, Beijing signalled its intention to provide significant liquidity support to local stocks. These steps aimed to revive economic growth, which had been hampered by persistent disinflation and sluggish business activity for nearly three years.

South Korea’s KOSPI rose 0.2 per cent, and Japan’s Nikkei 225 index increased by 0.5 per cent. In Australia, the ASX 200 index traded sideways, despite the positive sentiment from China.

The Reserve Bank of Australia’s decision to maintain interest rates, coupled with sticky core inflation, weighed on the Australian market.

While consumer price index inflation eased in August, core inflation remained above the RBA’s target, suggesting that rates may remain high for some time.

Attribution: Investing.com

Subediting: M. S. Salama