Asian stocks rise as China pledges to raise minimum wage

<p>Asia’s stocks have made gains as China pledges to raise its minimum wage.</p>

Asia's main stock benchmarks have gained ground this morning (February 6th) on news China has pledged to raise its minimum wage in a bid to close the income gap.

The lowest amount employers will legally be allowed to pay their workers will rise to 40 per cent of average urban salaries by 2015, according to Beijing, which is looking to tackle the gaping difference between the rich and the poor in the world's number two economy.

As the wealth gap has widened, concerns have grown as to the impact this will have on political and social stability.

China's Gini coefficient index – which gauges income disparity in a country – rose to 0.474 in 2012, which is higher than the 0.4 per cent level analysts often cite as the threshold for potential social unrest.

At close of play today, the Shanghai SSE Index was stable at 2434.4 points, while the Hong Kong Hang Seng advanced by 0.4 per cent to 23256.9 points.

Find out about major individual shares and spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.

For further details see our full non-independent research disclaimer and quarterly summary.