Udayavni Special

Asian markets lifted by China support and trade optimism


Team Udayavani, Jan 2, 2020, 4:08 PM IST

Hong Kong: Asian markets started the new decade on the front foot, with most rallying out of the blocks Thursday on lingering trade optimism, while China’s central bank announced fresh stimulus for the country’s stuttering economy.

The broad advances come as investors remain upbeat about the global outlook after Washington and Beijing eventually reached a trade agreement to ease tensions between the two, while Brexit uncertainty has essentially been removed.

However, geopolitical worries resurfaced following a warning from North Korean leader Kim Jong Un that moratoriums on nuclear and intercontinental ballistic missile tests had ended, with talks with the US going nowhere.

Shanghai and Hong Kong led gains after the People’s Bank of China said it would lower the number of cash lenders must keep in reserve, freeing up more than USD 100 billion for loans to small businesses.

The move comes as leaders try to kickstart growth in the world’s number two economy, which is running at its weakest for almost three decades.

“We expect the PBoC to continue to ease policy through 2020, trying to ensure growth remains around that six percent target,” Stephen Halmarick at Commonwealth Bank of Australia told Bloomberg TV.

“Easier monetary policy across Asia and the Pacific is a theme for this year as well,” he added.

Shanghai and Hong Kong both added one percent, while Sydney gained 0.1 percent and Singapore put on 0.7 percent.

Taipei, Mumbai, and Bangkok also rose, though Manila and Jakarta retreated. Tokyo remains closed for the rest of the week. Dealers were also being supported by relief after Donald Trump said the mini China-US trade deal will be signed off in Washington on January 15, and he will later travel to Beijing for the next phase of talks.

The signing will smooth concerns that the pact could suffer a last-minute collapse, which has niggled some traders. Seoul was down one percent after Kim declared a self-imposed moratorium was no longer needed, raising the possibility that the North could soon resume missile launches or nuclear tests.

He added that “the world will witness a new strategic weapon to be possessed by the DPRK in the near future”, referring to the country by its official name.

The announcement came after its end-of-year deadline for sanctions relief from the United States.

Lingering optimism continued to support oil prices, with signs of a pick-up in the global economy boosting hopes for demand.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

PM Modi greets people on Milad-un-Nabi

Mangaluru: Auto rickshaw driver kills self by jumping into river

BJP leader and 3 others nabbed over Lakhimpur Kheri violence

Unscientific planning has created Bengaluru’s drainage woes: CM Basavaraj Bommai

South Korea says North Korea fired projectile to sea

M’luru: Bulk waste management at source made compulsory for buildings and commercial complexes

Three Indian Americans appointed as White House fellows

Related Articles More

Stocks wobble as Wall Street’s momentum slows down

Bitcoin investing could get boost from exchange-traded fund

India, Israel agree to resume negotiations on FTA from next month

Oilmeal exports down 36 pc in Sep 2021: SEA

Sitharaman highlights need to keep supply chains open for vaccine raw materials to combat COVID-19

MUST WATCH

Animals that fall into the open pits at Dandeli

Dandeli Clock tower problem

News Bulletin 18-10-2021

ENTREPRENEUR WITH MAJORITY FEMALE STAFF

Viral Video : Clash between two groups in ICU ward


Latest Additions

Kangana Ranaut’s ‘Dhaakad’ to release in April 2022

Data shows ship crossed over oil pipeline that ruptured

CBSE announces date sheet for first term of class 10 and 12 board exams

US court dismisses plea filed by fugitive businessman Nirav Modi, associates

Maha: Farmers forced to postpone marriages of daughters after crop losses due to excess rains

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.