Commitment to support the real estate sector in China supported the risk appetite in Asian markets.
In China, the Politburo’s statements to support the economy, especially the real estate sector, are pushing stocks up in Asia.
The MSCI Asia Pacific Index gained 1 percent. While Hong Kong Hang Seng rallied over 3 percent, the technology companies of the index rose close to 5 percent. While the Chinese CSI 300 increased by 2.6 percent, the index that tracks Chinese real estate companies is on its way to record its fastest rise since December. US stock futures are flat.
Chinese statements are also reflected in the exchange rates. The offshore yuan rose 0.5 percent against the dollar as it rose to a one-week high. The Australian dollar, sensitive to Chinese commodity demand, also rose 0.4% against the dollar. The Bloomberg Dollar Index fell 0.2 percent to 1,214 points.
The US 10-year yield fell one basis point to 3.86%. Brent oil active contract rose 0.2 percent to around $83, while spot gold rose 0.4 percent to $1,962.