Asian Stocks Rally on China, LDP Race Weakens Yen – Asia Market Wrap

Asia’s stock market continued to rise as risk appetite in global financial markets was further bolstered by China’s recent stimulus policies and positive US economic data.

Following promises from officials to boost fiscal support and stabilise the real estate market in order to spur growth, China’s benchmark CSI 300 Index was poised for its largest weekly gain since 2008. The yen lost 1% of its value relative to the dollar, and futures for Japanese bonds increased as investors projected that Sanae Takaichi, the minister of economic security, would likely become the country’s next leader

The two biggest economies in the world, China and the United States, have provided stimulus to the markets this week. On Friday, ahead of a week-long holiday, China reduced the amount of cash banks were required to hold on hand. Further hints about the direction of US interest rates will be provided by the Federal Reserve’s preferred inflation index and a consumer demand snapshot, both of which are expected later on Friday.