Hong Kong (AFP) – Asian markets rose Thursday as Chinese investors waded back ahead of a briefing in Beijing by the country’s housing minister that fanned hopes for more measures to support the ailing property sector. The gains followed a positive day on Wall Street, where traders took heart from healthy earnings from Morgan Stanley and United Airlines that helped claw back some of Tuesday’s losses sparked by worries over this year’s tech rally. Oil prices also inched back up but remained under pressure owing to questions about the demand outlook.
Hong Kong and Shanghai led gains across the region as Chinese housing minister Ni Hong prepared for a news conference officials said will outline plans to support the real estate market and boost troubled developers. The world’s number two economy has struggled to recover since lifting strict Covid controls at the end of 2022, battered by a debt crisis in the property sector and torpid consumer demand. Authorities announced a series of piecemeal measures in that time to little effect, but last month’s raft of pledges — unveiled over several days — sparked blockbuster rallies in the mainland and Hong Kong on hopes the government was finally getting to grips with the problems.
However, news conferences last Tuesday and Saturday took the wind out of the sails and led to a fresh bout of volatility in trading floors. “While investors greatly welcomed this turn of events, one wonders whether the latest stimulus package is sufficient to drive a sustained recovery for the lethargic giant, with previous efforts contributing little to revive the economy,” analysts at Morningstar said in a report. With hopes high, Hong Kong rose almost two percent at one point in early trade, while Shanghai also posted healthy gains. Sydney, Singapore, Wellington, Taipei, and Manila also rose, though Tokyo extended Wednesday’s losses.
The gains followed another strong lead from New York, where small-cap stocks rose as investors shifted out of big-name firms such as Amazon, Apple, and Microsoft, which have soared this year on the back of demand for all things linked to artificial intelligence. US investors also welcomed strong earnings from Morgan Stanley and United Airlines that helped offset a decision by Dutch tech giant ASML to cut its 2025 guidance and forecast a slump in sales bookings, which sparked worries over the outlook for the sector.
– Key figures around 0200 GMT –
Tokyo – Nikkei 225: DOWN 0.5 percent at 38,998.26
Hong Kong – Hang Seng Index: UP 1.8 percent at 20,658.36
Shanghai – Composite: UP 0.7 percent at 3,225.57
Euro/dollar: UP at $1.0863 from $1.0859 on Wednesday
Pound/dollar: UP at $1.2996 from $1.2986
Dollar/yen: DOWN at 149.35 yen from 149.63 yen
Euro/pound: DOWN at 83.58 pence from 83.62 pence
West Texas Intermediate: UP 0.8 percent at $70.96 per barrel
Brent North Sea Crude: UP 0.8 at $74.78 per barrel
New York – Dow: UP 0.8 percent at 43,077.70 (close)
London – FTSE 100: UP 1.0 percent at 8,329.07 (close)
© 2024 AFP
