In Hong Kong, the Hang Seng index added 1.4 per cent to 22,763.43 points, while the Hong Kong China Enterprises Index gained 2.1 per cent to 10,620.99.
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His view was echoed by China global Capital Corp (CICC), which said in a report today that it’s “inevitable” for the central bank to expand the supply of base money as foreign reserves shrink, although it noted that banks now have little incentive to obtain fresh liquidity in a slowing economy.
On Wall Street, major indexes closed slightly higher on Friday, rounding off impressive gains for the week.
Authorities in China fixed trading of the Chinese yuan more strongly against the USA dollar for the seventh straight day. S&P 500 e-mini futures was broadly flat in Asian trading on Monday.
The markets were also buoyed by recent comments by Yi Gang, the deputy governor of the People’s Bank of China (PBOC), who said the stock market volatility had limited impact on China’s real economy and that stock market adjustment had “largely run its course”. “The Chinese government is going to stimulate domestic demand through more easing in monetary policy”, and fiscal policy that’s focused on local government infrastructure projects, he said.
“China and emerging markets growth have been slowing since 2011”.
Chinese investors jumped back into stocks on Monday in heavy volume trade that pushed prices to seven-week highs, boosted by hopes for more economic stimulus after the central bank expanded a scheme that increases banks’ ability to lend. “However, the market isn’t pricing in a full rate hike until the first quarter of 2017”, they said in a note.
New Zealand’s dollar dropped 0.4 per cent from near its strongest level since July 14, while the Aussie weakened 0.6 per cent to 73.21 United States cents.
In corporate news, SABMiller PLC’s board agreed on the key terms of a sweetened takeover offer by Anheuser-Busch InBev NV, valuing it at GBP68 billion ($104.36 billion).
Nickel slipped 0.9 per cent to $10,560 a metric ton in London, while copper lost 0.7 per cent. Gold for immediate delivery fell 0.5 per cent to $1,157.63 an ounce following a two-day advance.
Straits Times 3025.34, 26.84, 0.90%.
Twitter Inc. said it would cut up to 336 jobs, or 8% of its global workforce, as the messaging service continues to struggle with user growth.
WTI Futures $50.08, $0.45, 0.91%.
Stocks rose across the board, led by small-caps, with Shenzhen’s growth board ChiNext surging 4.5 per cent. Healthcare giant Johnson & Johnson (JNJ) reported Q3 earnings that beat estimates but on weaker than expected sales.
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The CSI 300 in Shanghai shed 2.65 points, or 0.1%, to 3,345.04.
