Investing.com– Most Asian stocks rose on Friday, tracking strength in Wall Street after the Federal Reserve cut interest rates as expected, while anticipation of more fiscal stimulus in China also buoyed local markets.
Regional markets took positive cues from a record-high close on the S&P 500 and the NASDAQ Composite, as markets were encouraged by the Fed signaling that it did plan to cut interest rates further, amid progress in bringing down inflation.
Risk appetite also remained upbeat after Donald Trump won the 2024 presidential election earlier this week, although the implications of a Trump presidency for Asia were still potentially negative, given his plans to enact more protectionist trade policies.
U.S. stock index futures were flat in Asian trade.
Chinese stocks rise with NPC set to deliver fiscal stimulus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.4% and 0.6%, respectively, while Hong Kong’s Hang Seng index added 0.6%.
Mainland Chinese stock indexes were the best performers this week despite concerns over a Trump presidency. The CSI 300 and the SSEC were up nearly 7% each this week.
Focus was squarely on a meeting of the Standing Committee of the National People’s Congress, which is set to conclude later on Friday. The NPC is widely expected to outline plans for more fiscal spending.
Analysts expect at least 10 trillion yuan ($1.6 trillion) in additional spending over the coming years, as Beijing struggles to shore up slowing economic growth.
A second Trump presidency is also expected to see Beijing roll out more stimulus, JPMorgan analysts wrote in a recent note. Trump has vowed to impose a 60% tariff on all Chinese imports, heralding more economic headwinds for China.
