Asian equities were buoyant on Tuesday, tracking a more than 1 percent jump on Wall Street overnight after Beijing unleashed new policy moves to rejuvenate a wobbly property market.
According to a statement on the People’s Bank of China’s website, the required down payment for second homes was lowered to 40 percent from 60 percent. In addition, select homeowners who have held a property for two years or more will be exempted from a sales tax, the finance ministry later announced.
The new moves are part of “Beijing’s broader package of policies to stabilize economic growth and dis-inflationary pressures,” according to HSBC’s note. As policymakers become increasingly concerned, analysts expect more easing measures in the coming weeks: “A 50-basis-point cut in the policy rate, a 200-basis-point cut to the reserve requirement ratio… in the coming months, if not weeks,” HSBC said.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.