Reuters Insider - Asia Insight: Shares rally as China surges on stimulus hopes
22/10/2018 12:48
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_1rc2f63p&referenceId=1_1rc2f63p&pageId=ReutersNews Source: Reuters Insider Description: Asian share markets swung into the black on Monday as the promise of more stimulus boosted Chinese stocks for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit. Short Link: https://reut.rs/2PMV0O0 Video Transcript: Hello, and welcome to your Asia Insight. I'm Angeline Ong. Asian share markets swung into the black as the promise of more stimulus boosted Chinese stocks for a second session. MSCI's broadest index of Asia Pacific shares outside Japan turned positive in early trading to rise almost 1%. Blue chips in Shanghai jumped as much as 4.3% earlier- 4.8% rather earlier in the day in the largest daily gain in three years, adding to Friday's bounce. Japan's Nikkei moved up 0.4% after being down more than 1% earlier in the session. Now China's policymakers have pledged new support for businesses after the recent fluctuations in the country's stock market. Liu He - China's Vice Premier - says he wants stronger credit support for non-state-owned companies. He also laid out plans to provide more opportunities for state-run firms and private companies to invest in each other. Liu, along with Central Bank Governor Yi Gang, blamed the market tumble on a combination of panic caused by trade tensions and an uncertain economic outlook. Now, a new Reuters' poll suggests that US trade policy towards China will become more aggressive over the next few years. More than half of the 53 economists who responded say Washington is likely to become more punitive and confrontational with Beijing. The findings counter a lingering view that President Trump's Administration will soften its tone. Only seven respondents predicted an improvement in US-China trade relations. One seasoned Western diplomat says the best thing China can do under the current situation is to hold its nerve. The best scenario is that China reacts wisely to the American assault, keeps its options open, and does not foreclose future improvement with the United States. Let's take a look at some companies in the news. And Japan's Calsonic Kansei, backed by KKR, is to buy Fiat Chrysler's high tech parts making business for $7 billion. Magneti Marelli specializes in lighting, power trains, and high tech electronics. The deal creates the world's seventh largest independent automotive component supplier with EUR15.2 billion in sales. Standard Chartered's Chief Financial Officer says the bank has made almost no progress since May in its efforts to cut costs. Andy Halford has asked managers to drop lists of cost-savings and potential job cuts. He's also predicting the recent slowdown in income will continue for the rest of the year, according to the website eFinancialCareers. Volkswagen's joint venture with China's SAIC has begun construction on a $2.5 billion plant in the Shanghai. The factory will produce Audi luxury vehicles when it opens in 2020. SAIC-Volkswagen says the new plant will have the capacity to make 300,000 cars a year. And Japan's KYB has admitted that its shock absorbers used to cut shaking during earthquakes have failed in at least 70 buildings. Failures include the Ministry of Finance building in Tokyo and several other central government structures. Media reports suggest Tokyo's main train station, as well as a major tourist site, may also have used the products. KYB products have been used at several venues for the 2020 Olympic Games. It is extremely regrettable that the company produced quake shock absorbers by falsifying data. This has brought deep concerns to building owners and users, as well as weakening public trust about safety. The European Union has signed a trade agreement with Singapore. 21 leaders from Asian countries joined EU counterparts in Brussels on Friday to discuss responses to protectionist policies, in particular, the imposition of tariffs on Chinese goods by the US. Malaysian Deputy Prime Minister Wan Azizah said the US President's actions had united EU and Asia. The reason why we should actually come closer together and because we are like conglomerate of within Asia and Europe, and I think working together to help each other free and fair trade, and to enhance each others' economies, and to enrich each other. I think that's the way forward in the global scenario now that the world is getting smaller. And that's it from your Asia Insight. I'm Angeline Ong, and this is Reuters