China stocks rise on stimulus hopes, dovish Fed talks
Asian stocks rose following overnight gains in the Wall Street, and the dollar beat a retreat as a dovish shift in tone from Fed officials had traders paring U.S. interest rate expectations, though with a wary eye on U.S. inflation data due on Thursday.
SHANGHAI: China stocks rose on Wednesday, tracking global markets higher on a dovish tone from U.S. Federal Reserve policymakers, while a media report saying Beijing is preparing new stimulus to help meet this year's official growth target also helped sentiment. The blue-chip CSI 300 Index climbed 0.4% and the Shanghai Composite Index added 0.2% by the midday recess.
Hong Kong's Hang Seng Index advanced 1.4% and the Hang Seng China Enterprises Index rose 1.5%. Asian stocks rose following overnight gains in the Wall Street, and the dollar beat a retreat as a dovish shift in tone from Fed officials had traders paring U.S. interest rate expectations, though with a wary eye on U.S. inflation data due on Thursday.
China is considering raising its budget deficit for 2023 as the government prepares to unleash a new round of stimulus to help the economy meet the official growth target, Bloomberg News reported on Tuesday. The report comes as China saw mixed holiday tourism data and gradual stabilising signs of economic recovery.
Shares in healthcare, artificial intelligence , and communications rose between 2% and 2.6% to lead the gains. Overseas investors bought a net 3.6 billion yuan ($493.55 million) of Chinese shares via the Stock Connect so far.
Meanwhile, real estate developers, energy and tourism firms dropped between 1% and 1.5%. There were also improving signs in the geopolitical front. China's Commerce Minister Wang Wentao and U.S. senators led by Senate Majority Leader Chuck Schumer held "rational and pragmatic" discussions on Monday, the Chinese commerce ministry said.
Tech giants listed in Hong Kong rose 2.1%. ($1 = 7.2941 Chinese yuan)