The stock market day: Rally on Asian stock exchanges continues

The stock market day
Rally on Asian stock markets continues

26.09.2024, 06:51

Asian stocks are continuing to rise against the global trend. In Tokyo, the Nikkeiindex by 2.5 percent to 38,812.94 points, the broader Topix Listed 2.0 percent higher at 2702.38 points. The Shanghai Composite gains 0.8 percent to 2919.50 points. The index of the most important companies in Shanghai and Shenzhen rise 0.8 percent to 3429.13 points. The driving force remains the hope for positive effects of the massive Chinese economic stimulus package, even if there are initial signs that the euphoria is waning. “After such a strong rise in recent days, one could argue that the selling is largely profit-taking, and some also believe that it reflects the belief that the PBOC’s stimulus measures are in no way turning things around and will “definitely not boost” consumption,” says Chris Weston of broker Pepperstone.

In the broader market, investors are turning their attention to a series of speeches by Federal Reserve policymakers throughout the day, including comments from Fed Chairman Jerome Powell, which could provide further clues to the interest rate outlook in the US. The core personal consumption expenditures (PCE) index – the Fed’s preferred inflation measure – is due out on Friday. “I don’t think the reaction will be excessive, but the direction will be clear,” said Jeff Ng of financial services provider SMBC, looking at the data. “If, say, prices stay where they are, that could dampen expectations of a 50 basis point rate cut somewhat. Traders are currently expecting a second major 50 basis point rate cut at the next meeting of the US monetary authorities in November.