Chinese stocks were among the finest performers of the day. The Shanghai Shenzhen CSI 300 and the Shanghai Composite indexes streamed 1.4% and 0.7% to over two-month highs. Hong Kong’s Hang Seng index also bounced 1.6% to a two-month high.
Sentiment towards China was backed by the scaling back of some anti-coronavirus measures in two cities- Guangzhou and Chongqing, following a string of protests versus the government’s stringent zero-coronavirus policy.
But Beijing has not demonstrated that it intends to scale back the policy further as China wrestles with record-high increases in infections.
Weak business activity data published on Thursday also highlighted the deepening economic cracks in the country.
Rising Interest Rates
Nevertheless, in recent sessions, Chinese markets rebounded sharply amid hopes that deteriorating economic growth and rising public ire will push the government into relaxing its stringent zero-coronavirus policy.
Broader Asian markets rebounded Thursday after Fed Chair Jerome Powell flagged more diminutive interest rate hikes in the forthcoming months. The move delivers relief to regional markets, struck by a sharp leap in interest rates this year.
Technology-heavy bourses profited the most from Powell’s remarks. Japan’s Nikkei 225 index bounced by 1.1%. It took back from stronger-than-expected capital spending figures for the third quarter, a small cheerful spot in Japan’s otherwise troubled economy.
The Taiwan Weighted index counted 1.1%, while India’s Nifty 50 and BSE Sensex 30 bourses cruised to record highs.