Newscasts - Asia Markets Briefing: Stimulus hopes send China stocks higher
23/10/2024 10:00
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_1qs9jelf&referenceId=1_1qs9jelf&pageId=Newscasts Source: 'Reuters - Business videos' Description: Hope for more government stimulus supported Chinese markets on Wednesday.The mood was also lifted by media reports that a Chinese think tank is calling for Beijing to issue 2 trillion yuan ($280 billion) of special treasury bonds, to set up a stock market stabilisation fund. Short Link: https://refini.tv/3UeX5oX Video Transcript: Stimulus hopes send Chinese stocks higher. Welcome to Asian Markets Briefing. I'm Thomas Warner. Hope for more government stimulus supported Chinese markets on Wednesday. The mood was also lifted by media reports that the Chinese think tank, is calling for Beijing to issue CNY2 trillion. That's $280 billion worth of special treasury bonds to set up a stock market stabilization fund. The institute of finance and banking says that such a fund could steady the market, through buying and selling blue-chip stocks, as well as ETF's. Well turning to the exchanges now and Shanghai was up around 0.5%. The Korean KOSPI also traded higher ahead of what are likely to be some upbeat earnings later in the week. Japan’s Nikkei fell for the third straight session as Saturday's election overshadowed any boost from a weakening Yen. And the Hang Seng got a boost from its second major IPO in as many days. Shares of drinks maker China Resources Beverage leaped 13.5% on the company's Hong Kong trading debut after raising $650 million in an IPO. The IPO is the second largest in Hong Kong this year following Horizon Robotics deal to raise $696 million, which was finalized on Tuesday. The Hong Kong bourse itself reported a 7% rise in third quarter profit on Wednesday, ahead of forecast. China's stimulus package and interest rate cuts by global central banks led to higher trading volumes. Profit hit HKD3.15 billion, that's $405 million. While revenues of HKD4.85 billion were its highest ever for a third quarter. Tokyo Metro shares shot up 44% in their market debut on Wednesday. Japan’s biggest IPO in six years bagged $2.3 billion with promises of generous dividends. The company raised JPY348.6 billion with an offering that was more than 15 times oversubscribed and priced at the top of an indicative range of JPY1,200 apiece. The China National Offshore Oil Corporation reports on its third quarter on Thursday, China's largest offshore oil and gas producer was challenged in the period by falling oil prices. Q3 this year was the weakest for the crude market since the second quarter of 2023. Major memory chip maker SK Hynix reports its Q3 earnings on Thursday as well. The South Korean firm has expected to post a jump in operating profit, despite challenges that it faces in the global memory chip market. And on the economic side, Japanese flash Jibun Bank PMI's for October are due on Thursday. Japan's factory activity eased in September due to softer production, marking a third straight month of contraction. But service sector activity rose to its highest in five months. And there'll be flash October peer miles from India as well. Growth in India's business activity fell to a nine-month low in September, hit by cooling demand and rising costs. But as with Japan, services were more robust. Job creation in the sector rose at its fastest pace in two years. And that's it for your Asia Markets Briefing