Equities in China and Hong Kong were standout gainers on Monday after Beijing’s latest measures to tackle its property crisis.
Stocks elsewhere in Asia declined with Japan’s benchmark plummeting. The CSI 300 index was poised for its biggest daily gain in 16 years, and both iron ore and Chinese developer stocks surged after three major cities eased rules on housing purchases.
A slump in Japanese stocks contributed to a decline in the MSCI Asia Pacific gauge, after the victory of Shigeru Ishiba in the Japanese ruling party’s leadership race wrong footed investors. European and US stock futures fluctuated between gains and losses.
China’s “government does seem more intent on following through on measures to get the economy firing again, so it does feel slightly more promising than previous attempts,” said Matthew Haupt, a portfolio manager at Wilson Asset Management.
“So the rally might have some more legs than previous times and we will be waiting for more announcements to get more conviction around the trajectory of the Chinese economy and stock market.”
