A stamp duty cut rally in China
Chinese equities jumped due to the government's decision to reduce stamp duty on stock trades, marking the first such reduction since 2008.
So despite an Ecoonimc swoon song engulfing the mainlands.
China's economy, effectively lowering stock market transaction costs, is encouraging someone, Team China ? to buy stocks.
The upward movement extended beyond China's borders, with Japan, South Korea, and Australia also experiencing a rise in share prices. But I think that has more to do with the steady-state Fed policy. After all, currency markets are doing little.
Regardless of who buys, the spree has contributed to notable gains in the Hang Seng and the CSI 300 indexes, poised for their most substantial monthly increases. Encouragingly, every sector participated in this upward trajectory. Still, with macro data likely to push back on the rally, I would be surprised if this is little more than a dead bounce.
Author
Stephen Innes
SPI Asset Management
With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.
