China’s central bank boosts stocks in Asia
Asian stocks went up on May 6. Investors were reassured by China’s demonstrated readiness to reach compromise in talks with Washington by changing its monetary policy.
According to the analysts, the central bank of China put RMB at the mild position. It takes some of the attention off the most heated topic in US-China fiscal relations - exchange rates. That paved the way for the regional stocks, that entered growth right after the exchanges came back from the holidays.
Wall Street futures saw growth as well in mid-day trading. E-minis of the S&P 500 index gained 0.5%.
Meanwhile European futures took an underwhelming start. Trade has been influenced by the court’s challenge to the Germany’s part in the European stimulus efforts and anxiety concerning difficult recovery. Eurostoxx 50 remained mostly flat. DAX lost 0.1%. FTSE edged lower by 0.1%.
MSCI Asia-Pacific index gained 0.8%. Trading was somewhat light as Japanese exchanges went on a holiday. Meanwhile China negated earlier losses. The blue-chip index gained 0.6%. Hang Seng index gained 1.5%. Kospi gained 1.76%.
China, opening for the first time since Thursday, reversed early losses sending the blue-chip index (CSI300) up 0.6%. Hong Kong's Hang Seng index (HSI) climbed 1.5% while South Korea's KOSPI jumped 1.76%.