Asian stock markets welcome China’s economic stimulus
September 24, 2024 – Asian stock markets today responded to the Chinese government’s recently announced economic stimulus package, with gains of more than 4% in some cases. And Canadian steel producers are calling on their government to expedite future steel and aluminum tariffs.
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Asian stock markets welcome China’s economic stimulus
China today announced a series of planned measures to further stimulate economic growth. Among other things, the People’s Bank of China will reduce banks’ minimum reserve requirements by 50 basis points to further ensure liquidity.
For China’s real estate market, the government announced a reduction in mortgage interest rates for existing loans. According to media reports, the government plans to provide at least 500 billion yuan (US$70.8 billion) in liquidity support.
Tuesday’s action came after the central bank lowered the short-term repo rate on Monday to further boost liquidity. This measure is directly aimed at supporting economic growth;
Asian stock markets reacted strongly
Following the announcement, Chinese indexes Shanghai-Shenzhen CSI300, Shanghai Composite, and Hang Seng Index all rose by more than 4%.
Other Asian stock markets also performed well today. Japan’s Nikkei 225 index rose 0.7% and the TOPIX rose 0.5% as Purchasing Managers Index data showed growth in Japan’s services sector in September exceeded expectations.
South Korea’s KOSPI rose 1.1%, and Taiwan’s market capitalization-weighted stock index rose about 0.7%.
Prices of base metals are also rising
Prices of important base metals rose today in Asia as well. On the SHFE Commodity Exchange, copper (+1.8%), lead (+1.5%), zinc (+1.4%), nickel (+1.2%), tin (+0.8%) and aluminum (+0.7%) rose. A similar trend could be seen in European LME base metals at the start of trading.
Canadian steel makers demand new tariffs
After the Canadian government announced its intention to impose a broad 25% tariff (surcharge) on steel, stainless steel and aluminum imports from China at the end of August 2024, domestic steel manufacturers are urging the government to hurry. I’m looking for it. According to media reports, lobbying by steel producers has increased significantly.
Editor’s note: Someone must have been looking over the shoulder of the EU factory.
The Canadian government wants tariffs on almost all Chinese steel products to be finally introduced on October 15, 2024. The consultation phase was completed on September 20th, and the final results were announced on October 1st, 2024.
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