Asian stocks rose, with the regional benchmark index headed for its highest close in seven months, after China’s new leaders said they will promote domestic demand and “urbanization.”
China’s Shanghai Composite Index climbed 3 percent, heading for its biggest advance since Sept. 7. The government will keep macroeconomic policies stable, making adjustments as needed to deal with difficulties, the Communist Party’s Politburo said in its first assessment of the economy under new leader Xi Jinping. Hong Kong’s Hang Seng Index rose 1.5 percent.
China will expand domestic demand and actively promote urbanization, the official Xinhua News Agency said yesterday. Separately, China National Radio reported yesterday China will focus on simplifying taxes on property transactions.
“The tone of ‘policy continuity and stability’ implies both monetary and fiscal policies are likely to stay accommodative to help China strengthen domestic demand and tackle external challenges,” HSBC economists Hongbin Qu and Junwei Sun said in a note today. “In addition, fiscal and urbanization reforms are set to be stepped up.”
Chinese lenders and developers advanced. ICBC, as China’s biggest bank is known, climbed 1.6 percent to HK$5.25. China Construction Bank Corp. rose 1.79percent to HK$5.98. China Resources Land Ltd., a state-owned developer, jumped 3.7 percent to HK$20.95.
Via – Bloomberg