Stocks rally as China boost lingers for now
File photo shows a resident holding China's RMB and US dollar banknotes on hands in Qionghai, south China's Hainan Province. PHOTO: XINHUA
World stocks rallied on Monday, with sentiment supported by China’s efforts to shore up its battered markets and lift confidence towards the world’s No 2 economy.
The dollar was broadly firm, touching a fresh high against the battered yen.
Europe’s broad STOXX 600 index hit a two-week high, a day after posting its biggest one-day jump in about a month on China hopes. London’s blue-chip FTSE rallied 1.5%, playing catch-up after Monday’s UK public holiday. US stock futures, however, were mostly steady, suggesting some caution heading into the Wall Street open. All this followed a 1% gain in MSCI’s broadest index of Asia-Pacific shares outside Japan and a 2% rally in Hong Kong stocks.
Beijing introduced a slew of measures to shore up the market, such as halving stock trading stamp duty, loosening margin loan rules and putting the brakes on new listings. Latest news, however, suggested China will remain a source of global market volatility.
Published in The Express Tribune, August 30th, 2023.
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