Asian stocks surge as Chinese shares recover losses

Stocks in China surged after authorities unveiled new stimulus measures, boosting optimism about the global economy following US markets reaching a fresh high overnight.

Asian equities rose across the board on Thursday, with a benchmark of mainland Chinese shares clawing back some of the previous day’s losses, News.Az reports, citing foreign media.

Treasuries were steady in Asia, while oil gained as traders watched for an Israeli response to Iran’s missile attack. The Bloomberg Dollar Spot Index and the euro were little changed.

While the promise of new policy stimulus gave Chinese markets a shot in the arm in late September, concerns the deployed sum won’t be enough snapped a blistering rally in mainland shares on Wednesday. While US inflation data later on Thursday will provide detail as to the path of Federal Reserve policy, investors in China will look to a press conference by the finance ministry on Saturday for clues on fiscal stimulus.

Elsewhere in Asia, Taiwan Semiconductor Manufacturing Co. posted a better-than-expected 39% rise in quarterly revenue on Wednesday. Markets are closed in Taiwan on Thursday. Indian shares gained even as quantitative strategists at Bernstein cut their equities rating to underweight from neutral.

US consumer price data to be released later Thursday is expected to show inflation further moderating, supporting the Fed’s anticipated easing in the coming months. Despite this, market pricing indicates the likelihood of another 50 basis point rate cut is all but off the table following last week’s strong jobs report.

In commodities, crude edged higher after a two-day decline, with Brent trading near $77 a barrel. The market remains on edge about Israel’s intentions to launch a retaliatory strike against Tehran, which has sparked fears about an all-out war. Iran has warned it’s ready to launch thousands of missiles if needed.

President Joe Biden has discouraged an attack on Iranian oil infrastructure, and spoke with Israeli Prime Minister Benjamin Netanyahu on Wednesday for the first time in over a month.

News.Az