Equity markets kicked off the week on a positive note as traders looked to more easing to buoy the global economy amid expectations that China may ramp up efforts to revive growth.
Gold touched a record high. European and US stock futures rose and the MSCI Asia Pacific Index climbed, with shares in China, Hong Kong and South Korea all advancing.
China announced plans for a rare economic briefing Tuesday by three top financial regulators just as it cut one of its short-term policy rates, fueling speculation that fresh stimulus is on the way.
Traders are looking for a new round of measures to resuscitate China’s economy after a slew of disappointing data in August raised concerns that the country could miss its annual expansion target of around 5% without additional support.
Looking ahead, US statistics due later this week are likely to provide investors fresh insight about the pace and scope of further Federal Reserve easing.
“The start of the Fed easing cycle should lead to more stimulus from China, particularly as the 5% growth target seems difficult to achieve,” Mohit Kumar, chief strategist and economist for Europe at Jefferies International Ltd., wrote in a note.
In addition to lifting Asian share markets, the “stimulus measures should also be beneficial for Europe.”
