Oil Gains & Chinese Stocks Resume Rally on Mideast – Asia Market Wrap

Markets in China rose as authorities provided information on stimulus measures, as optimism about the global economy grew after US markets reached a new high overnight.

Asian equities climbed broadly on Thursday, with a benchmark of mainland Chinese stocks recouping some of the previous day’s losses. Treasuries held steady in Asia, while oil rose as traders waited for Israel’s response to Iran’s missile attack. The Dollar index and the Euro were largely unchanged.

While the promise of more policy stimulus boosted Chinese markets in late September, concerns that the amount deployed would not be sufficient halted a torrid advance in mainland equities on Wednesday. While US inflation statistics later on Thursday will provide insight into the Fed’s policy path, Chinese investors will look to the finance ministry’s press conference on Saturday for indications on fiscal stimulus.

In Asia, TSM reported a better-than-expected 39% increase in quarterly revenue on Wednesday. Taiwan’s markets are closed on Thursday. Indian shares rose despite quantitative strategists downgrading their equities rating from neutral to underweight.

In commodities, crude oil climbed higher following a two-day slump, with Brent reaching $77 per barrel. The market remains concerned over Israel’s plans to undertake a retaliation strike against Tehran, which has raised worries of an all-out conflict. Iran has warned that it is prepared to launch thousands of missiles if necessary.