Asian Stocks, Yuan Rise as China Rally Broadens – Asia Market Wrap

Asian stocks increased as the yuan gained and equities rose for a second day, driven by a rally sparked by China’s large stimulus program.

Gains on Chinese stocks continued as investors maintained their bets that the People’s Bank of China’s recent actions would accelerate a market turnaround and revive the flagging economy of the nation. With a 3.2% gain, the onshore benchmark CSI 300 is on pace to make up for its losses for the year.

For the first time since May 2023, the offshore yuan appreciated beyond 7 as the dollar fell to an eight-month low.

With anticipation that further fiscal support will come, investors are cautiously optimistic that the policy barrage has put a floor beneath China’s market decline. The second-largest economy in the world has seen a slowdown, which had created a significant overhang for Asian markets. However, a notable rebound due to policy support might propel advances throughout the region.