The CSI 300 is up 4%, and the Hang Seng is nearing that level as well, as China's central bank unleashed a blitz of policy support for the economy. The People’s Bank of China Governor, Pan Gongsheng, announced a cut to the amount of money banks must hold in reserve, lowering it to the lowest level since at least 2020, along with a cut to a key policy rate. This marked the first time both measures were reduced on the same day in at least a decade. The central bank chief also unveiled a package to shore up the nation’s beleaguered property market, including lowering borrowing costs on as much as $5.3 trillion in mortgages and easing rules for second-home purchases. China will also allow funds and brokers to tap PBOC funds to buy stocks, he added.
Elsewhere, the RBA left policy on hold at 4.35% for a seventh meeting, and Governor Bullock acknowledged that the format of the committee’s discussion had changed this month. She mentioned that there was no explicit consideration of a rate hike on Tuesday, which, relative to the recent past, is a dovish shift. She added that GDP data suggested a softening of the near-term outlook, and the outlook for consumption remained subdued.
In other markets, gold hit a fresh record of $2,636 per ounce, and oil edged higher after Israel launched airstrikes on Lebanon, boosting regional tensions.
The day ahead is light on data, with German IFO and US Consumer Confidence reports being the highlights, along with speeches from the Fed's Bowman, German Buba President Nagel, and Bank of Canada Governor Tiff Macklem to watch for, although there has already been plenty of action.
