GLOBAL MARKETS - Hong Kong and China stocks set for best week of recent years
Istanbul, September 27 (Hibya) - Chinese markets are set for their best week of recent years, as the mainland’s CSI 300 is poised for a nearly 15 percent rally this week, powered by the central bank announcing and releasing economic stimulus measures, while Hong Kong’s Hang Seng index is set for a weekly gain of 12.85 percent.
On Friday, the CSI 300 climbed almost 4 percent and the HSI rose 3.5 percent, as the People’s Bank of China cut its 7-day reverse repurchase rate to 1.5 percent from 1.7 percent, slashing the reserve requirement ratio of financial institutions by 0.5 percentage points.
China also released its industrial profit data for August, which saw a 17.8 percent plunge year on year. The drop follows a 4.1 percent year-on-year increase in July, the fastest pace in five months.
On a year-to-date basis, profits at large industrial firms grew at 0.5 percent to 4.65 trillion yuan ($663.47 billion) for the first eight months, compared with 3.6 percent in the first seven months.
Other Asia-Pacific markets also mostly rose Friday, with investors also assessing September inflation numbers from Japan’s capital city of Tokyo, which is widely considered a leading indicator of nationwide trends.
Tokyo’s headline inflation rate eased to 2.2 percent, down from August’s 2.6 percent. The core inflation rate—which excludes prices of fresh food—in the capital city was 2 percent, down from 2.4 percent in August.
Japan’s Nikkei 225 rose 0.81 percent, while the broad-based Topix fell 0.18 percent after the CPI reading was announced. The Japanese yen weakened more than 1 percent against the U.S. dollar, hitting a three-week high and trading at 146.38.
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