China injects $586 Bn stimulus package and sends Asia soaring, risk sentiment improves.

Asian markets really took to the news that the Chinese government has announced a $586 Bn (4 Trillion Yuan) rescue package to stimulate the domestic economy. The package was said to be aimed at strengthening fiscal policy and some targeted support for the property market. The news bode well with the region, the Nikkei 225 up 5.5%, after declining sharply in the previous 2 sessions. The S&P/ASX 200 rose 1.3% to 4’103.80 while the RBA revised down their GDP growth forecast. Taiwan’s Taiex fell 0.4% to 4’725.03 despite its fourth interest rate reduction in 2 months. The Hangseng had a strong showing, rising 3.4% to 14’726.59.



Go to Full Article