Asian Stocks Rise As China Meeting Takes Centre Stage – Asia Market Wrap
Asian markets reduced their earlier gains on Friday as investors anticipated the results of a critical legislative meeting in China, which is likely to provide policy support to revive slowing GDP.
China’s CSI 300 Index fell as traders wondered whether any steps passed by the Standing Committee of the National People’s Congress, China’s equivalent of parliament, would be sufficient to overcome the potential of increased tariffs under a second Trump presidency.
Elsewhere in the area, Australian and Taiwanese stocks rose, contributing to a second day of advances for a regional equities index. That came as the S&P 500 rose 0.7% and the Nasdaq 100 gained 1.5% in US trading after the Fed reduced interest rates as expected. Treasuries and US equities futures remained largely unchanged in Asian trade.
According to Michelle Lam, greater China economist at Société Generale in Hong Kong, possible Chinese actions include debt support for local governments and increased consumer spending. Any new regulations must be set against the possibility of tariffs, she said, noting that Trump’s projected 60% taxes may not materialise.
Gold pared some of its gains from Thursday, while oil is set for a weekly gain.