Amid major geopolitical concerns emerging, particularly from the Middle East, that could severely affect the global economy, another major news item appears to showered some euphoria onto the financial markets. It is, of course, the Chinese central bank's ambitious fiscal stimulus for economic recovery.
Chinese Stimulus Power Markets
This, needless to say, had a relay effect on the Chinese indices, that otherwise has been a bleak year.
The two key indices, the Shanghai-based SSE Composite and the Hong Kong-based Hang Seng, saw major growth in recently concluded trading week. Both the indices ended the day's proceedings on Friday with a flourish. Hang Seng ended the day with a rise of 3.55 per cent. Meanwhile, the SSE Composite ended the day with gains of 2.88 per cent.
The gains made by the indices under the influence of the Chinese government are even greater, when one takes the previous week or the last 5 trading sessions into consideration.
SSE Composite Index
In the past 5 trading sessions, the SSE Composite Index gained a mammoth 12.87 per cent or 352.14 points.
The overall value reached the mark of 3,087.53 points.
Hang Seng Index
The gains were even more substantial when we move to Hang Seng, as the index rocketed by 13.13 per cent or 2,394.89 points in the past 5 trading sessions.
This took the overall value of the Hang Seng to 20,632.30 points.
Taiwan Index
Interestingly, the Taiwan-based Taiwan Capitalization Weighted Stock Inde or TAIEX, also appeared to have received a major boost from the recent announcement by China.
The index, which closed in red on Friday, faired better when the previous 5 trading days were taken into consideration. In the past week, the Taiwanese index gained an impressive 2.94 per cent or 651.85 points, taking the overall size of the index to 22,822.79.
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