Asian stocks rose on Thursday, helped by gains in Chinese stocks. China’s central bank launched a 500 billion yuan funding program to boost the markets. Meanwhile, the U.S. dollar stayed close to a two-month high as investors waited for U.S. inflation data expected later in the day.
The People’s Bank of China (PBOC) announced that it would begin accepting applications from financial institutions for a new funding program. This scheme was first revealed on September 24 as part of a set of measures aimed at boosting the economy, which led to a rise in Chinese stocks.
China’s blue-chip CSI300 index increased by 1.6% in early trading, recovering after a 7% drop the previous day. Investors were still focused on details of the government’s plans to support the struggling economy.
Hong Kong’s Hang Seng index also rose by 2.7%, following a 1.3% drop on Wednesday. So far, it has gained over 25% this year.
Overall, the MSCI index of Asia-Pacific shares outside Japan went up by 0.78% in early trading. Japan’s Nikkei index rose by 0.6%.
China’s Finance Ministry will hold a press briefing on October 12th at 10:00 AM local time to talk about fiscal policy and economic development. The briefing will share details about China’s efforts to adjust its fiscal policy to help boost economic recovery.
Additionally, China’s National Bureau of Statistics announced it will begin a nationwide sample survey on Thursday to track population changes and improve economic and social policies, as the country faces a drop in birth rates.
The survey, running until Nov. 30, follows a similar study conducted in 2023.
Beijing is urgently trying new methods to encourage young couples to have children, as China experienced a second year of population decline in 2023.
Policymakers are increasingly worried about the rapid aging of the population, with those aged 60 and older expected to increase by 40% to over 400 million by 2035, matching the populations of Britain and the U.S. combined.
Update
The FTSE China A50 Index futures have increased by over 6%. The Shanghai Composite Index has bounced back by around 3%, and the Hang Seng Index has risen by 3.7%.
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