The Shanghai Composite index gained 2.1% to 3,284.32, Shenzhen added 3%, the Kospi gained 1% to 2,623.29, S&P/ASX 200 rose 0.5% to 8,252.80 and Taiex added 0.3%
Asian shares gained ground on Monday, with stocks in China rising more than 2% after the finance minister said over the weekend that more stimulus is needed for the slowing economy.
China’s finance minister, Lan Foan, said Saturday that the government was considering additional ways to boost the economy, but he did not give details of a major new stimulus plan. Stock investors and analysts have been hoping for a plan of up to 2 trillion yuan, or nearly $280 billion.
But any expressions of support by officials tend to push share prices up, and the “national team” of big state-run companies and financial institutions tend to weigh in 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 of them. When it comes to Chinese policy briefings, it is 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 month’s end, we’ll know for sure if Beijing is delivering the goods or if it’s just more smoke and mirrors.
The Shanghai Composite index gained 2.1% to 3,284.32 and the smaller market in Shenzhen added 3%. Hong Kong’s Hang Seng index tumbled 0.9% to 21,061.23.
China reported that consumer inflation weakened in September and that wholesale prices declined further, reflecting continued weakness in domestic demand that has spurred the government into a flurry of measures meant to revive declining housing sales and other spending.
Tokyo’s markets were shut for a public holiday. In South Korea, the Kospi gained 1% to 2,623.29, while Australia’s S&P/ASX 200 rose 0.5% to 8,252.80. Taiwan’s Taiex added 0.3%.
