Asian stocks rebounded today (July 29th), which Chinese shares taking the lead after Beijing reiterated that it will do what is necessary to stabilise financial markets.
After seesawing in a volatile session, China's Shanghai Composite index soared 3.5 per cent after the China Securities Regulatory Commission said the local government will increase purchases of stocks if needed.
In addition, the central bank injected cash into money markets and hinted at more policy easing measures.
Meanwhile, investors are awaiting a Federal Reserve statement after a two-day policy meeting, which is expected to provide further clues on the timing of a US rate increase.
China's Shanghai Composite index soared 3.5 per cent to 3790.26, the Hang Seng index was up 0.5 per cent to 24619.45 and Australia's S&P ASX 200 index gained 0.7 per cent to 5624.16. Japan's benchmark Nikkei 225 edged down 0.1 per cent to 20302.91, while South Korea's Kospi index remained flat at 2037.62.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.