Asian stock markets concluded on a positive note, fueled by China’s commitment to implement supplementary economic stimulus measures, aiming to bolster economic recovery across the region.
Hong Kong’s Hang Seng surged to a close of 17,778.07 points, marking an increase of 323.88 points or +1.86%. This gain was underpinned by the Chinese government’s announcement of additional economic stimulus strategies after maintaining the prime lending rate (LPR) to catalyze economic revival.
China’s Shanghai Composite also registered positive gains, reaching 3,068.32 points, reflecting a rise of 13.95 points or +0.46%. The index received a boost from China’s commitment to reinforce economic stimulus measures following the LPR maintenance, aimed at fostering economic recovery.
South Korea’s Composite (KOSPI) closed at 2,491.20 points, rising by 21.35 points or +0.86%. However, concerns lingered among investors about the potential for the Federal Reserve (Fed) to further elevate the policy interest rate to mitigate inflationary pressures. Concurrently, the South Korean won demonstrated strength against the US dollar.
In Australia, the S&P/ASX 200 closed at 7,058.40 points, a gain of 9.00 points or +0.13%, while the All Ordinaries concluded at 7,268.70 points, up by 7.70 points or +0.11%. The surge in energy stocks supported these gains, bolstered by expectations of China, a significant trade partner for Australia, rolling out supplementary economic stimulus measures.
However, Tokyo’s Nikkei closed on a negative trajectory at 33,388.03 points, recording a decline of 197.17 points or -0.59%. Investor profit-taking ensued following the index’s intraday peak, the highest in 33 years. Moreover, robust selling of export stocks ensued alongside a strengthened yen, impacting market sentiments.
The optimistic closures across most Asian markets, driven by China’s commitment to stimulate economic growth, reflect the region’s responsiveness to bolstering economic recovery amidst ongoing concerns and fluctuations in global financial dynamics.