Asia Stocks Rise on China, Energy Shares Gain – Asia Market Wrap
January 29, 2024
Asia’s stocks began the week on a bullish note, buoyed by China’s recent moves to support its equities market. Higher oil prices have helped energy shares.
China’s securities regulator announced over the weekend that it will ban the loan of certain shares for short selling beginning Monday. The latest restrictions add to measures aimed at halting a collapse in the country’s stocks, which has seen the MSCI China Index fall around 60% from its February 2021 high.
“The very poor sentiment leading to this could potentially open the door for some technical rebound” in Chinese stocks, said Homin Lee, a senior macro strategist at Lombard Odier. “We’re slightly more cautious because what’s really needed is a change in the inflation outlook for the country and the overall sentiment in the private sector.”
Mainland China’s shares failed to replicate Hong Kong’s gains, citing concerns about a proposal mandating US cloud businesses to divulge international clients developing AI applications. The proposal, which is set to be released on Monday, has the potential to exacerbate relations between Washington and Beijing, as some US legislators proposed legislation last week targeting Chinese biotech companies.
