- Asian equities rose as China's central bank increased monetary assistance for the economy by injecting $112 billion into the financial sector. Treasuries fell somewhat.
- The MSCI AC Asia Pacific Index increased by 1% to its highest level since early August, with Hong Kong stocks rising by 3%. Futures for US shares rose marginally after a technical indicator indicated that they were overbought. The S&P 500 rose slightly in the previous session, while the Nasdaq 100 dipped following a more than 50% gain in 2023.
- The People's Bank of China poured a record amount of cash into the economy through one-year policy loans, attempting to sustain an economy beleaguered by a property market turmoil and poor demand. A critical piece of monthly data revealed that China's recovery remains patchy, but a loosening of home-buying restrictions in Beijing and Shanghai kept traders optimistic.
- "Today's rally in the Chinese stock market is triggered by a bit of everything news-wise, from property easing to the large amount of MLF injection," said Ken Wong, Asian equity portfolio specialist at Eastspring Investments. Some investors may also be closing short positions ahead of the holiday season, according to him.
