Asian Markets Rise on China’s Property Stimulus Measures
U.S. markets were closed for Labor Day, while Chinese indexes led gains in Asia A Country Garden residential building in Fuyang, China. The troubled property developer won approval from creditors to restructure a bond repayment. Photo: Cfoto/Zuma Press By Will Horner Updated Sept. 4, 2023 12:14 pm ET International stock indexes diverged in low-volume trading as investors assessed new Chinese measures aimed at supporting its beleaguered property sector. Asian indexes climbed across the board, led by Chinese markets, as investors welcomed Beijing’s latest effort to support home buying. The Shanghai Composite Index rose 1.4% and Hong Kong’s Hang Seng Index climbed 2.5%. Japan’s Nikkei 225 rose 0.7%. U.S. markets were closed for the Labor Day holiday, sapping liquidity from internati
A Country Garden residential building in Fuyang, China. The troubled property developer won approval from creditors to restructure a bond repayment.
Photo: Cfoto/Zuma Press
International stock indexes diverged in low-volume trading as investors assessed new Chinese measures aimed at supporting its beleaguered property sector.
Asian indexes climbed across the board, led by Chinese markets, as investors welcomed Beijing’s latest effort to support home buying. The Shanghai Composite Index rose 1.4% and Hong Kong’s Hang Seng Index climbed 2.5%. Japan’s Nikkei 225 rose 0.7%.
U.S. markets were closed for the Labor Day holiday, sapping liquidity from international markets. U.S. stock futures and European indexes pared early gains, with the Stoxx Europe 600 index closing around the flatline. Novo Nordisk’s shares edged higher, extending the Danish pharmaceutical giant’s lead as Europe’s most-valuable company, having overtaken LVMH Moët Hennessy Louis Vuitton on Friday.
Major Chinese conurbations, including Beijing and Shanghai, eased mortgage requirements for some home buyers late last week, with other cities following suit over the weekend. Plus, Country Garden, one of China’s most troubled property developers, agreed with creditors to restructure an impending bond repayment.
Hong Kong-listed shares of Country Garden soared almost 15% following the news. Other Chinese property developers also jumped, with Hong Kong-listed Longfor Group climbing over 8% and Seazen Group rising more than 18%.
“The [Chinese] government has been unwilling to get the bazooka out and unleash massive stimulus measures,” said Altaf Kassam, head of investment strategy and research for Europe, the Middle East and Africa at State Street Global Advisors. “Now it does feel like there is a bit more interest from the Chinese to protect the property market and give investors confidence.”
Crude oil prices held close to nine-month highs as investors awaited insight into supply plans from the Organization of the Petroleum Supporting Countries and its allies. Analysts expect Saudi Arabia to decide this week whether to unwind or extend a one million barrel-a-day output cut; they mostly see Riyadh continuing the curbs for at least another month.
Write to Will Horner at [email protected]
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