---
title: "Asian stocks extend rally on China, US sentiment: markets wrap"
description: "Stocks in Asia extended gains as risk appetite across financial markets got a further boost from China’s latest stimulus measures and upbeat US momentum."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-09-27-asian-stocks-extend-rally-on-china-us-sentiment-markets-wrap/"
published: "2024-09-27T05:22:35"
updated: "2024-09-27T05:22:36"
lang: "en-ZA"
word_count: 519
---

# Asian stocks extend rally on China, US sentiment: markets wrap

> Stocks in Asia extended gains as risk appetite across financial markets got a further boost from China’s latest stimulus measures and upbeat US momentum.

By Bloomberg · Published 27 September 2024, 07:22 SAST · Updated 27 September 2024, 07:22 SAST

## Content

Equities in Australia and Hong Kong advanced, while China’s benchmark CSI 300 Index is set for its biggest weekly [gain](https://www.bloomberg.com/news/articles/2024-09-26/china-stocks-jump-as-politburo-vows-fiscal-support-to-hit-goals) since 2008 after officials pledged to increase fiscal support and stabilise the property sector to revive growth. Further bullishness came from US economic data overnight while Japan’s Nikkei index was poised to erase all losses since the Bank of Japan’s July interest rate hike.

Stimulus in the world’s two largest economies has been a catalyst for markets this week, with China lowering the amount of cash banks must keep in reserve on Friday, ahead of a weeklong holiday. The Federal Reserve’s preferred inflation indicator and a snapshot of consumer demand are both due later on Friday, and will provide additional cues on the path for US interest rates.

“Greater stimulus measures out of China and the market pricing an aggressive Fed easing cycle, while the US economy is strong, bode well for risk assets,” Elias Haddad, a strategist at Brown Brothers Harriman, wrote in a note. “This encouraging risk backdrop is a drag on the dollar mostly against growth-sensitive currencies.”

The dollar edged higher on Friday, while 10-year US Treasury yields were flat. The yen was weaker ahead of a [leadership election](https://www.bloomberg.com/news/articles/2024-09-26/japan-s-new-prime-minister-to-be-decided-by-ldp-leadership-poll) in Japan with one of the leading candidates to replace Prime Minister Fumio Kishida considered an opponent of interest rate hikes. Adding to the dovish picture, consumer inflation in Tokyo eased this month after Kishida reinstated energy subsidies to help households cope with one of the hottest summers on record.

The People’s Bank of China unleashed one of the country’s most daring policy campaigns in decades on Tuesday, with Beijing rolling out a strong stimulus package in a push to shore up the slowing economy and investor confidence.

Shares of New World Development [surged](https://www.bloomberg.com/news/articles/2024-09-26/new-world-development-halts-trading-amid-ceo-departure-reports) as much as 17% in Hong Kong on Friday, the most since May 2009, as the stock resumed trading after being suspended when the indebted firm announced its chief executive officer was stepping down.

As for the US, [revised data](https://www.bloomberg.com/news/articles/2024-09-26/us-post-pandemic-economic-growth-revised-higher-in-annual-update) showed the US economy in better shape than initially expected, spurred mainly by bigger consumer-driven growth fueled by robust incomes. [A decline in US jobless claims](https://www.bloomberg.com/news/articles/2024-09-26/us-jobless-claims-decline-to-218-000-a-four-month-low) underscored the resilience of the labour market. But investors tuning into commentary from Fed Chair Jerome Powell on Thursday didn’t get any details on the economic outlook or path for monetary policy.

Futures for US indexes softened early Friday after the S&P 500 climbed to its 42nd closing record of this year.

US stock indexes were also propelled higher on Thursday by Micron Technology Inc., which gave a strong forecast aided by AI demand. On the other hand, news of the US Justice Department’s probe of Super Micro Computer Inc. — also a beneficiary of the AI boom — pushed its shares lower.

In commodities, [oil slid further](https://www.bloomberg.com/news/articles/2024-09-25/latest-oil-market-news-and-analysis-for-sept-26) as Saudi Arabia was reportedly committed to increasing output in December, while Libya named its new central bank governor, opening the way to reviving some crude production. Copper rallied back above $10,000 a ton and iron ore broke through $100 while gold hit yet another record high on Thursday.