Asia: Chinese stocks rise on hopes of further economic stimulus
Stocks in Asia remained mixed on Tuesday with reports that the People's Bank of China is expected to launch further monetary policy driving copper prices up.
Fanuc Ltd.
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Nikkei 225
37,022.59
09:44 18/04/24
The Shanghai compostive index was down 1.13% but Hong Kong's Hang Seng gained 0.03%.
According to the Wall Street Journal, the central bank is set to launch quantitative easing, which will allow will allow Chinese banks to swap local-government bailout bonds for loans as a way to boost liquidity and lending.
The LME three-month contract closed up 1% or $61 at $6097 per tonne.
Rabobank analysts said the rumours come "as no surprise to us given China’s structural economic problems".
In economic news, China Railway Construction Corp gained 4.43% after announcing it signed two deals worth $5.5bn (£3.6bn) for construction projects in Africa.
Chinese oil and gas company Sinopec jumped 13.28% despite denying reports that it was planning to merge with Petrochina. On Monday, the China Central Commission for Discipline Inspection put Sinopec Group's president Wang Tianpu under investigation for suspected "serious disciplinary violations".
Japan's Nikkei 225 was 0.38% higher driven by Fanuc's increase in dividend. The Japanese robotic company doubled its dividend payout to 60%, driving its shares up 3.3%.
In terms of economic data, retail trade fell 9.7% year-on-year in March, against forecasts of -7.3% and a decline of 1.7% the month before.
Meanwhile, investors await for the Bank of Japan's meeting due on Thursday, where they expect no further stimulus will be implemented, while the central bank is expected to cut its growth and inflation forecasts.
Elsewhere, in Australia the ASX index fell 0.57% following a speech from Reserve Bank's Glenn Stevens, who said would not comment on whether the bank will cut rates during next week's policy meeting.
The Australian leading Index, which measures future trends of the overall economic activity, rose slightly to 0.5% in February from 0.4% the month before.