Business News Desk – On Tuesday, September 24, Asian stock markets witnessed a strong rally and reached the highest level in the last two and a half years. The main reason behind this rally was China’s new economic announcements. Apart from this, the possibility of further reduction in US interest rates has increased the enthusiasm of investors. Also, pressure on the dollar has also supported the rally. In an important press conference, China’s financial regulator announced a 0.50 percent cut in bank reserves and a reduction in home loan interest rates.
These measures are aimed at boosting China’s slowing economic growth. Following these announcements, China’s blue-chip CSI300 index gained 1%, while the Shanghai Composite Index also opened 1% higher. Hong Kong’s Hang Seng index jumped more than 2% in early trade, while the Mainland Property Index gained 5%. Due to all this, the MSCI Asia-Pacific stock index (excluding Japan) rose 0.41% to 588.43, its highest level since April 2022.
Analysts’ opinion
“Although the market had already expected that some stimulus measures might be announced at the press conference, I would say that the package announced is much more than the market expected. This move can support China’s economy. But whether it is enough to address all the concerns related to its economy, I think it still remains to be seen,” said Khoon Goh, head of Asia research at ANZ.
Condition of other markets
The Reserve Bank of Australia (RBA) is also going to hold a meeting on its monetary policy and investors are keeping an eye on its decision. Meanwhile, Japan’s Nikkei index jumped 1.4% to a three-week high. At the same time, the US dollar index remained stable at 100.95, close to last week’s one-year low of 100.21. Oil prices also saw a slight increase, Brent crude futures rose 0.26% to $ 74.09 a barrel, while US crude futures rose 0.3% to $ 70.6.
