- Chinese shares pulled regional stocks higher on expectations that Beijing will provide additional economic support, while Wall Street markets began the week with gains ahead of crucial central bank rate announcements.
- Technology companies in Hong Kong rose more than 4%, while mainland Chinese equities rose as well, causing a regional market index to rise 0.7% on Tuesday. An index of Chinese equities traded in the US gained the most in nearly six months on Monday, as the country's top officials used a vital Politburo meeting to signal additional aid.
- Shares in Australia opened slightly higher, while stocks in Japan and South Korea varied.
- While the Communist Party's top decision-making body did not announce large-scale stimulus, its pledge to support the slowing economy contributed to optimistic sentiment for market traders. The Dow Jones Industrial Average gained for the 11th consecutive day, its longest winning streak since 2017. The S&P 500 was trading near 4,550, while the Nasdaq 100 underperformed following a special rebalance that went into effect on Monday.
- The offshore yuan also rose to its highest level in more than a week after the PBoC maintained its currency support. The Australian dollar, which is sensitive to China's development prospects, rose 0.2%.
- Likewise, crucial Fed and ECB meetings this week will be widely scrutinised for signs that officials are nearing the end of the cycle of rapid policy tightening. With poor data from both the US and the eurozone, there were fresh reminders of the damaging recessionary effects of continual rate hikes. Apart from the economic picture, global corporations worth a combined $27 trln, including Microsoft, LVMH, and Samsung were scheduled to report results.
