Asian stocks are flashing green on China stimulus talks
|- Asian stocks are a sea of green, the Shanghai Composite is up 1 percent.
- China stimulus talks overshadow dismal PMI reading.
- Brexit optimism likely boosting risk appetite.
Asians stocks are solidly bid Thursday as China's leadership signaled that further stimulus is being planned to counter the economic slowdown.
At press time, the Shanghai Composite index is reporting a 1.2 percent gain. Stocks in Australia, New Zealand, and South Korea have also added roughly 1 percent each. Japan's Nikkei, however, is down 0.47 percent at press time, possibly due to a pullback in the USD/JPY from yesterday's high of 113.38 to 112.72.
A Politburo meeting chaired by China's President Xi Jinping yesterday concluded that downward pressure on the economy is increasing and the government needs to take timely steps to counter it.
However, the world's second-largest economy has little room to come up with big bang stimulus as it is already battling the negative impact of the debt-financed stimulus of the past.
Hence, equity markets need more catalyst for a sustained rally. Indeed, Brexit optimism might keep stocks better bid for a few days.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.