Hong Kong stocks surged more than 3% in afternoon trading, continuing a rally this week driven by a series of Chinese economic stimulus measures.
The Hang Seng Index climbed 3.2%, or 604.28 points, to 19,733.38, while the Shanghai Composite Index rose 2.2%, or 63.08 points, to 2,959.39. From China’s second stock exchange, the Shenzhen Composite Index also gained 2.2%, or 34.32 points, to 1,609.60.
Japan’s Nikkei 225 index advanced 2.5% to 38,812.94, and oil prices also increased.
This rally in Asia followed the Chinese government’s announcement of cash handouts or discount vouchers for the poor ahead of next week’s National Day holidays. While such subsidies are rare, the Communist Party occasionally makes special payments to families in need to mark significant events.
The exact amount of the payments was not disclosed, but they are expected to support consumer spending, a weak point in China’s economy. The Ministry of Civil Affairs announced via its WeChat account that “a one-time living allowance” would be provided to the extremely poor, orphans, and other vulnerable groups to commemorate the 75th anniversary of the founding of New China on October 1.
South Korea’s Kospi surged 2.1% to 2,649.51 after semiconductor company SK Hynix launched production of a new AI-focused memory chip, leading to an 8.8% rise in its shares.
In Australia, the S&P/ASX 200 gained 0.8%, closing at 8,187.60.
Meanwhile, on Wall Street, the Dow Jones Industrial Average fell 0.7% to 41,914.75, the S&P 500 slipped 0.2% to 5,722.26, and the Nasdaq Composite remained nearly flat, closing at 18,082.21.
In the bond market, the yield on 10-year US Treasury notes, a key indicator for global investments, rose to 3.79%, up from 3.74% the previous day.
