Stocks in Asia rose after Chinese officials reassured investors of the government’s commitment to supporting the market and boosting share prices.
China’s benchmark CSI 300 Index advanced as much as 1.8%, hitting its highest level in almost three weeks before pairing some of its gains, while Hong Kong shares also gained.
The MSCI Asia Pacific index rose for the fourth session, set for the longest winning run in nearly a month. The gains came after a briefing hosted by China’s securities regulator, which said local insurers and mutual funds should add to their equity holdings.
The move helped improve the mood among Chinese investors, after a tariff threat from US President Donald Trump earlier this week weighed on sentiment.
“This is like stacking the firewood to build a campfire: we are setting up for a more constructive environment, but you need a spark,” said Tai Hui, JPMorgan Asset Management’s APAC chief market strategist.
“A lot of investors internationally are concerned that further deterioration in the US-China relationship could impact investment.”
