Chinese shares jumped amid speculation the government will do more to support growth and as more mainland funds were allowed to trade Hong Kong equities. Oil slid a second day and the dollar was stronger against most peers.
The Hang Seng China Enterprises Index surged 2.8 percent by 11:03 a.m. in Tokyo, and the Hang Seng Index advanced 1.2 percent as regulators expanded access to the city’s exchange link with Shanghai. MSCI Asia Pacific Index was little changed with Standard & Poor’s 500 Index futures. The greenback climbed 0.1 percent against the euro and the Australian and New Zealand currencies weakened 0.4 percent. U.S. crude oil fell 1 percent, extending Friday’s 5 percent rout.
China’s central bank chief said that the nation’s growth rate has tumbled “a bit” too much and that policy makers have scope to respond, underscoring forecasts for further monetary easing in the world’s second-largest economy. Talks on Iran’s nuclear program resume Monday amid speculation that an accord to ease sanctions could mean a resumption of oil shipments, further swelling global supply. Reports on personal spending and income are due in the U.S.
“Confirmation that further stimulus in China is likely might have some positive announcement impact and help calm market nerves but in the long run is likely to be outweighed by concerns that growth in China’s economy continues to soften,” Ric Spooner, a chief market analyst at CMC Markets in Sydney, wrote in an e-mail to clients.
China has room to act with both interest rates and “quantitative” measures, People’s Bank of China Governor Zhou Xiaochuan said in remarks at the Boao Forum for Asia, an annual conference on the southern Chinese island of Hainan.
Source : Bloomberg