Asian shares rose on Tuesday after China pledged to boost policy support for its lagging economy, while the dollar fell ahead of the Federal Reserve meeting.
As of 9.36 A.M. Bangkok time, the Hang Seng index climbed 3.05%. Mainland China’s Shanghai Composite also increased by 1.58%.
On Monday, the Politburo of China vowed to “adjust and optimize policies in a timely manner” to help the country’s faltering real estate market.
The top decision-making body also promised to increase consumption and reduce debt risk, as well as “elevate stable employment to a strategic goal.”
This follows a week of dismal economic data that sparked fresh requests for governmental intervention to bring back growth.
Most other Asian markets were also trading higher. The Kospi index in South Korea gained 0.17%. This follows preliminary projections of 0.9% annual increase in the country’s GDP in the second quarter.
The S&P/ASX 200 in Australia rose by 0.31%. The Nikkei 225 index, however, dropped 0.33%.
The Dow Jones Industrial Average posted its longest winning streak since February 2017 overnight, increasing to 11 days. The Dow surged by 0.52%, the S&P 500 by 0.40%, and the Nasdaq Composite by 0.19%.
According to a highly watched poll released on Monday, business activity in the United States hit its lowest level in five months in July due to slowing growth in the service sector.
The Federal Reserve may look favorably on the slowdown if it helps bring inflation down.
Investors and analysts believe Wednesday’s 25 basis point rate hike to be the last in the Fed’s current tightening cycle.
