Asian stocks jumped today (April 21th), boosted by upbeats sessions in Europe and Wall Street after China launched new stimulus measures to boost its sluggish economy.
China's central bank lowered the reserve requirement ratio (RRR) for all banks by one percentage point over the weekend in a bid to stimulate lending into its sluggish economy.
Chinese newspaper People's Daily said the cut is expected to release 1.2 trillion yuan (£130 billion) into the country's economy.
The global rally over the China's lower RRR overshadowed concerns over regulatory curbs on speculative trading introduced on Friday by the China Securities Regulatory Commission.
Margin trading businesses of brokerages have been banned from taking part in umbrella trusts, which allow investors to take on more leverage.
Hong Kong's Hang Seng jumped 2.7 per cent to 27850.49 and the Shanghai Composite Index in mainland China added 1.8 per cent to 4294.31. Japan's Nikkei 225 gained 1.40 per cent to 19909.09 while South Korea's Kospi remained flat at 2144.79. Australia's S&P/ASX 200 climbed 0.6 per cent to 5872.34.
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.