Stock market today: Asian shares gain after China says more help is needed for its slowing economy
BANGKOK– Asian shares gained ground on Monday, with shares in China rising more than 1% after the finance minister said over the weekend that more stimulus is needed for the slowing economy.
US futures were little changed and oil prices retreated.
The Chinese Minister of Finance said Saturday that the government is looking at additional ways to stimulate the economy, but he did not provide details on a major new stimulus plan. Stock investors and analysts are hoping for a plan of up to 2 trillion yuan, or about $280 billion.
But any expression of support tends to push prices higher, and the “national team” of large state-owned companies and financial institutions tends to intervene with stock purchases to help stabilize markets, analysts say.
‘The devil, as they say, is always in the details – or in this case, the glaring lack thereof. When it comes to Chinese policy briefings, it’s usually all sizzle and no steak,” Stephen Innes of SPI Asset Management said in a commentary. “By mid-week we’ll see if the market bid has legs, and by the end of the month we’ll know for sure if Beijing delivers the goods or if it’s just more smoke and mirrors.”
The Shanghai Composite index rose 1.7% to 3,271.06 and the smaller market in Shenzhen gained 1.9%. Hong Kong’s Hang Seng index lost 0.4% to 21,164.93.
China reported that consumer inflation eased in September and wholesale prices fell further, reflecting continued weakness in domestic demand, which has prompted the government to implement a series of measures aimed at reviving declining home sales and other spending. to blow.
Large-scale Chinese military exercises Taiwan’s environment and outlying islands appeared to have little impact on markets on Monday.
Taiwan’s Taiex rose 0.4%.
Tokyo’s markets were closed for a holiday. In South Korea, the Kospi rose 1% to 2,622.43, while the Australian S&The P/ASX 200 rose 0.5% to 8,253.60.
The advance in Asia followed a strong close on Wall Street on Friday, when US stocks rose to records, boosted by strong gains on Wall Street. big banks.
The S&The P 500 climbed 0.6% to 5,815.03, placing it at the top highest ever established earlier this week, completing its fifth straight winning week. The Dow Jones Industrial Average rose 1% to set its own record at 42,863.86. The Nasdaq composite lagged the market with a 0.3% gain after declining Tesla kept it under control. It closed at 18,342.94.
Wells Fargo rose 5.6% after reporting stronger earnings for its latest quarter than analysts expected. JPMorgan Chase climbed 4.4% after reporting a milder profit decline than analysts feared. It was the strongest single force pushing up on the S&P500.
BlackRock, meanwhile, rose 3.6% after also posting a better quarterly profit than analysts expected. The investment giant managed a record $11.5 trillion in total assets for its clients at the end of September.
The gains for the banks helped offset Tesla’s 8.8% decline after the electric vehicle maker unveiled its long-awaited robotaxi on Thursday evening. Critics pointed to a lack of details about the planned rollout.
Following the unveiling of the ‘Cybercab’, potential rival Uber Technologies rose 10.8% and was one of the strongest forces lifting the S.&P500. Lyft rose 9.6%.
In the bond market, government bond yields were mixed after the latest updates on inflation at the wholesale level and on sentiment among American consumers.
Prices paid by producers were 1.8% higher in September than a year earlier, but did not improve as much as economists expected.
In other trades early Monday, U.S. benchmark crude lost 91 cents to $74.65 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, fell 95 cents to $78.09 a barrel.
The dollar rose to 149.30 Japanese yen from 149.08 late Friday. The euro fell from $1.0935 to $1.0926.