Chinese stocks are on track for their best week since 2008, after a blitz of stimulus measures aimed at the faltering economy.
The CSI 300 index rose by 3.5% today and is heading for a weekly gain of about 15%. Hong Kong’s Hang Seng index gained 2.7% and is on track for a near 13% weekly rise, its biggest since 1998.
An index of mainland Chinese property stocks is up 20% this week, and metal prices also rallied, including iron ore, copper, gold and silver. Investors are betting that the stimulus, which included interest rate cuts and support for the property market, will revive the latter and the wider economy.
After today, Chinese markets will be closed for a week-long public holiday.
Tin Lu, the chief China economist at Nomura, said: "Beijing seems finally determined to roll out its bazooka stimulus in rapid succession … Beijing’s recognition of the severe situation of the economy and lack of success in a piecemeal approach should be valued by markets.
"But eventually it is still necessary for Beijing to introduce well-thought policies to address many of the deep-rooted problems, particularly regarding how to stabilise the property sector, which is now in its fourth year of contraction."
The Japanese yen fell by 1% to three-week lows amid a leadership contest in the country. It has just been announced that the former defence minister Shigeru Ishiba won the race to lead Japan’s ruling Liberal Democratic party and will replace the prime minister, Fumio Kishida, as the country’s next leader.
The agenda • 8.55am BST: Germany unemployment for September • 10am BST: eurozone consumer sentiment final for September • 11am BST: UK CBI retail sales for September • 1.30pm BST US Spending for August with PCE price index • 3pm BST: US Michigan consumer sentiment final for September We’ll be tracking all the main events throughout the day ...
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