ASIA MARKETS: Shares, Currencies Rise On Chinese Measures To Support Economy
Tuesday,
07-Dec-2021
09:56 AM (IST)
Asian shares and currencies were trading higher after China took measures to boost the economy facing headwinds from the property sector and coronavirus outbreaks. Hong Kong shares rose 1.1% and Chinese equities added 0.2% after the People’s Bank of China cut the cash reserves banks need to set aside. The PBoC cut the Required Reserve Ratio (RRR) by 50 basis points to help the country’s economy affected by the troubles of the property sector, power outages, and Beijing’s zero tolerance to the pandemic. Japan’s main index rose 1.2% and Singapore shares gained 02%. The FTSE Bursa Malaysia KLCI Index was up 0.4% at 1,490, recovering from its worst level in more than a year. Axiata Group and MISC were the top performers on the KLCI. Meanwhile, the Chinese Communist Party’s top decision-making body signaled yesterday that restrictions on the real estate sector would be relaxed in 2022. China’s property sector has witnessed a severe downturn this year amid measures by Beijing to reduce risks and leverage. Asian shares were further helped by the recovery in U.S. equities. The S&P 500 Index rose more than a precent yesterday to wipe off last week’s losses. Futures indicated that the index could extend the gains. U.S. yields rose on better risk appetite. The 10-year Treasury yield rose seven basis points yesterday and inched further higher in Asia to reach 1.44%. U.S. data due on Friday is expected to show that consumer prices are rising at a much faster pace than the Federal Reserve is comfortable with. The Fed Chair has said policymakers will discuss speeding up the taper at next week’s meeting amid increased inflation risks. The Chinese yuan inched higher to 6.3706 to the dollar. China's imports and exports rose at a faster- than-expected-pace last month, data released today showed. The Thai baht and the Indonesian rupiah added 0.2% while the Malaysian ringgit was little changed. The dollar index was a tad lower at 96.22.
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