Hong Kong : Fresh Chinese stimulus sparked a global stocks rally in markets that had been coloured red by fears of a slowdown in the world’s second-largest economy, with Tokyo surging almost 8%.
The pledge by China’s finance ministry to adopt a “proactive fiscal policy … and accelerate reforms that will help stabilise growth” gave markets a burst of confidence.Japanese stocks spearheaded an Asian equities rally as investors scooped up shares on the cheap, with buying also boosted by a weak yen and hopes that China’s wild market volatility was ending.
Tokyo’s Nikkei-225 index leapt 7.71% or 1,343.43 points to 18,770.51. That was the biggest one-day jump since global financial crisis and Lehman Brothers bankruptcy of late 2008, when markets faced heavy volatility.
The benchmark BSE Sensex surged 402 points to settle at a one-week high 25,719.58. The index has now covered up 826 points in two sessions. The rupee firmed up to 66.41 against the US dollar, which contributed to the positive sentiment.