China Stocks Climb on Stimulus Bets; Aussie Jumps on Jobs

Chinese stocks advanced yesterday as weaker-than-expected price data spurred speculation that the government will do more to boost growth. Australia’s dollar surged and bond yields climbed after a record jump in employment, while wheat extended declines.

The Shanghai Composite Index climbed 0.5 percent by 12:32 p.m. in Tokyo and Hong Kong’s Hang Seng Index added as much as 0.3 percent after China’s inflation slowed to 2 percent in August. The MSCI Asia Pacific Index was little changed and Standard & Poor’s 500 Index futures fell 0.2 percent after the gauge snapped a two-day drop in the U.S. The yen traded near an almost six-year low, while the Aussie strengthed 0.4 percent after Australia added 121,000 jobs last month. Wheat dropped to the lowest level since 2010.

Chinese producer prices fell 1.2 percent in August, more than the 1.1 percent slip forecast in Bloomberg surveys. A jump in part-time positions swelled Australian employment by more than eight times the 15,000 increase predicted by economists.

The Shanghai stocks gauge is climbing for the seventh time in eight days and is headed for its highest close since March 2013. The Hang Seng China Enterprises Index (HSCEI), which tracks shares of Chinese companies in Hong Kong, added 0.2 percent today after plunging 2.6 percent yesterday.

The consumer price index rose 2 percent from a year earlier compared with the 2.2 percent median estimate in a Bloomberg News survey and 2.3 percent in July. Today’s data add to signs of weakness in domestic demand after figures this week showed declining imports and a slowdown in money-supply expansion, bolstering the case for additional measures to support the economy.

Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.