Chinese Equities Higher on Stimulus Bets

Chinese stocks advanced as weaker-than-expected price data spurred speculation that the government will do more to boost growth. Australia’s dollar surged and bond yields climbed after a record jump in employment, while wheat extended declines.

The Shanghai Composite Index climbed 0.5 percent by 12:32 p.m. in Tokyo and Hong Kong’s Hang Seng Index added as much as 0.3 percent after China’s inflation slowed to 2 percent in August. The MSCI Asia Pacific Index was little changed and Standard & Poor’s 500 Index futures fell 0.2 percent after the gauge snapped a two-day drop in the U.S. The yen traded near an almost six-year low, while the Aussie strengthed 0.4 percent after Australia added 121,000 jobs last month. Wheat dropped to the lowest level since 2010.

Chinese producer prices fell 1.2 percent in August, more than the 1.1 percent slip forecast in Bloomberg surveys. A jump in part-time positions swelled Australian employment by more than eight times the 15,000 increase predicted by economists. The Philippines and Indonesia review borrowing costs today, while The Reserve Bank of New Zealand reiterated the currency’s level is “unjustified and unsustainable.”

Bloomberg

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