China Shares Rise on Stimulus Hints

Chinese shares led the region’s gains on Thursday as investors bet on more stimulus measures by the government after disappointing bank loan data.

Chinese banks had issued far less credit in December than expected despite a surprise interest rate cut by the central bank in November.

The Shanghai Composite closed up 3.5% at 3,336.45 – its biggest daily increase since 5 January.

In Hong Kong, the benchmark Hang Seng index ended up 1% at 24,350.91.

Shares in Japan posted their biggest daily gain in four weeks as the yen fell against the dollar.

The benchmark Nikkei 225 closed up 1.9% at 17,108.70. The dollar rose to 117.72 yen, recovering from 116.07 yen.

A weaker yen is good for big Japanese companies with overseas operations as it makes their goods more affordable for consumers.

The upward trend in Japan and China came despite a fall in US stocks on Wednesday as investors reacted to a fall in US retail sales and disappointing company results.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza