Asia Stocks were showing signs of recovery tomorrow as Hong Kong’s Hang Seng Index Futures rose 2.12% to 17,438.50 and China A50 Futures gained 2.07% to 11,870 points as Beijing made a rare mid-year tweak of its fiscal budget to boost economy in the final quarter of this year.
Chinese President Xi Jinping made his first-ever known visit to the People Bank of China on Tuesday since he became president a decade ago, according to several reports, including Bloomberg and Reuters. The market is expecting a massive stimulus package coming after this event, which has been seen as a sign for economic focus.
On Tuesday, China’s government body approved a plan to raise the fiscal deficit ratio for 2023 to about 3.8% of gross domestic product from the earlier 3% set in March, according to the official Xinhua News Agency. This plan also includes a massive stimulus that the market had been talking about in the past few weeks, which is an issuance of additional sovereign debt worth 1 trillion yuan in the fourth quarter to support its economy against headwinds from the property sector and weak exports.
Meanwhile, US stocks were also trading higher on Tuesday as well. The Dow Jones Industrial Average rose 196.44 points or 0.60% to 33,132.85 points. S&P 500 gained 28.21 points or 0.67% to 4,245.25 points and the tech-heavy Nasdaq Composite increased 104.01 points or 0.80% to 13,122.33 points.
