Asian Equity Market Handover: Asian Stocks Pumped Up By China Fiscal Stimulus
Kelvin Wong June 11, 2019 7:07 AM
Stock market snapshot as of [11/6/2019 0600 GMT]
- Asian stock markets have continued to roar ahead as at today’s Asian mid-session despite an intraday weak closing seen in the U.S. benchmark stock indices yesterday, 10 Jun. The S&P 500 has ended yesterday session with a daily close near its session low of 2885 and it retreated down from an intermediate resistance of 2900 after a challenge on it earlier.
- The main catalyst for the upbeat mood seen in Asian equities has been triggered by a latest fiscal policy U-turn from China on infrastructure projects. The central government has relaxed the funding restriction for local government’s infrastructure projects where special-purpose bonds can be issued to fund such projects. The ChinaA50 and its related proxies plays; ASX 200 and Hang Seng Index are the best performers so far, up by 1.94%, 1.51% and 0.78% respectively. In addition, the on-going rally seen in the ChinaA50 is on track for its biggest single day gain since 14 May 2019.
- The Hang Seng Index is now breaking above a key technical level of 27600 and a daily close above it validates a further potential up move in the medium-term; 1 to 3-week time frame. Click here for a recap on our latest weekly technical outlook.
- In a media briefing yesterday, U.S. President Trump has threatened to raise tariffs on China again if President Xi does not have a meeting with him at the upcoming G20 summit on 28 to 29 Jun 2019 in Japan.
- FTSE 100 and German DAX CFD indices futures are showing modest gains of 0.13% and 0.26% respectively.
- Key UK economic data release to take note later will be the jobs data for May out later at 0830 GMT.
*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.
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