As China Moves to Increase Shares, Asian Stocks Rise – Asia Market Wrap
Stocks in Asia surged as Chinese officials reassured investors about the government’s commitment to supporting the market and raising share values.
China’s benchmark CSI 300 Index rose as much as 1.8%, reaching its highest level in over three weeks before reversing some of its gains. The Hang Seng China Enterprises Index, which monitors mainland stocks listed in Hong Kong, lost a 1.6% intraday gain as some investors saw Beijing’s initiatives as a transitory boost. The MSCI Asia Pacific index rose for the fourth straight day, setting up the biggest winning streak in nearly a month.
The advances in Chinese benchmarks followed a conference hosted by China’s securities regulator, which advised local insurers and mutual funds to increase their equities holdings. The decision helped to lift the spirits of Chinese investors after Trump’s tariff threat earlier this week dampened optimism.
Asian markets are still absorbing the effects of Trump’s first few days in office, which have delivered mixed signals to investors. Trump has threatened tariffs against China, but has mainly avoided escalating the trade war.