Chinese Stocks Surge Amid Rate Cut Speculations and Trade Optimism
Chinese and Hong Kong stocks have surged for a third consecutive session, influenced by prospects of a potential Federal Reserve interest rate cut. The Shanghai Composite marked its highest close in nearly four years. Growing optimism over U.S.-China trade talks further bolstered market confidence.
Mainland China and Hong Kong stock markets have witnessed a significant uptick for the third consecutive session, with the Shanghai Composite closing at its highest in almost four years. This surge is largely driven by speculations around a potential Federal Reserve interest rate cut next month, which has buoyed investor sentiment.
At the day's close, the Shanghai Composite index saw an increase of 0.48%, reaching 3,683.46, while China's blue-chip CSI300 index rose by 0.79%. In Hong Kong, the Hang Seng Index experienced a robust leap of 2.58%, with its tech index rising 3.52%, reaching new heights amid optimism of a Fed rate cut after limited impact from U.S. tariffs on goods' prices.
In addition to the hopeful economic atmosphere fueled by impending trade talks between U.S. and China, Beijing pledged subsidies to boost consumption across eight consumer service sectors. Market analysts suggest that risks related to Chinese equities have been over-discounted, and with China's fiscal capacity, the nation is well-positioned to maintain growth even under stringent U.S. tariffs.
(With inputs from agencies.)
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