Asian markets rally on Chinese reforms

Monday, November 18, 2013

Chinese markets lifted higher for the third straight session, spurred by reforms and expectations of extended stimulus in the US. As further details on economic reform were announced last week Chinese equity indices led the charge higher with the Shanghai Composite and CSI 300 adding 2.87% and 3.33% respectively.

Stocks listed in Hong Kong also rallied higher, with the Hang Seng rallying 2.65% during overnight trading. Details of the economic reforms signalled at a greater focus on indebted local governments, which will be able to sell bonds to fund further construction. An easing of the one child policy and improving land rights for farmers as well as tighter control on regional finances mark the biggest reforms since the 1990’s. Japanese equity markets managed to hold onto key support at current levels as both the TOPIX and Nikkei look set to surpass year-to-date highs reached in May.

The Federal Reserve is considering a delay in the compliance date for the Volcker regulation, giving major institutions additional time to comply with the provisions, according to the Financial Times. Banks are currently required to conform with the rule banning prop trading by July 2014. However, regulators are still finalising the proposal which may push back its release to December, giving banks less than a year to implement the changes. As a result the Fed is considering delaying the compliance deadline to July 2015.

Events for today: Monday, 18 November 2013

 

0900

EZ

Sep

Invest Flow  & Trade Balance

1500

US

Nov

NAHB Housing Market

 

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