(Bloomberg) — Chinese shares erased a drop to advance in volatile trading as investors weighed the impact of measures announced by the Finance Ministry to revive growth.
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The onshore equities benchmark rallied as much as 1.7%. The yuan declined along with oil, reflecting skepticism among some traders that Beijing’s latest efforts will be enough to jumpstart growth. European stock futures were steady while US contracts slipped, as did the euro.
While China’s Finance Minister Lan Fo’an vowed more support for the real estate sector at a keenly anticipated weekend briefing, he did not produce a headline monetary stimulus figure. The focus is now turning to the next major policy briefing in the coming weeks — from the Communist Party-controlled parliament that oversees the budget — for details of more support.
“Sentiment is back to being hopeful, but will also get into a seeing-is-believing mode to await actual numbers and more details on consumption and property measures, which were lacking,” said Xin-Yao Ng, an investment director at abrdn Asia Ltd. “MOF did everything within their purview to give market hope to look forward to.”
Before the weekend briefing, money managers had been waiting for more fiscal measures to help sustain the rally sparked by the stimulus blitz that authorities unleashed in late September. Investors and analysts surveyed by Bloomberg had expected China to deploy as much as 2 trillion yuan ($283 billion) in fresh fiscal stimulus on Saturday, including potential subsidies, consumption vouchers and financial support for families with children.
The CSI 300 Index, a benchmark of onshore equities, capped its biggest weekly loss since late July on Friday, while the Australian and New Zealand dollars – proxies for China sentiment among developed market currencies – fell for two weeks running.
“There’s going to be consolidation and pullback,” Wendy Liu, chief Asia and China equity strategist at JPMorgan Chase & Co., told Bloomberg TV. “Structurally, it looks fine. Short-term, it’s not as…
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