Japan Shares Recoup Brexit Losses on Fresh Stimulus Expectations

Japanese shares extended a rally for a third day to recoup losses from the Brexit vote amid heightened expectations for fresh stimulus.

The Topix index rose 1.9 percent to 1,310.22 at 9:03 a.m. in Tokyo. The measure, which plunged 7.3 percent on June 24 after Britain voted to leave the European Union, has now joined global equities to recover from the decline. The yen was little changed at 104.70 per dollar after the biggest two-day drop since 2014. Prime Minister Shinzo Abe ordered his economy minister to compile stimulus measures this month. The Sankei newspaper reported that government officials are considering “helicopter money” as a policy option.

The Nikkei 225 Stock Average added 2 percent to 16,415.66. In the U.S., the Dow Jones Industrial Average joined the S&P 500 Index to close at a fresh record, with U.S. equities climbing a third day as crude rallied and Alcoa Inc.’s results bolstered optimism on corporate earnings. Futures on the S&P 500 were little changed on Wednesday.

Source : Bloomberg

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Hong Kong Shares Rally on Mainland Gains, Stimulus Expectations

Hong Kong stocks jumped 2 percent to near two-month highs on Thursday, lifted by bullishness in mainland markets and increased expectations that Beijing will make fresh stimulus moves.

The Hang Seng index rose 2.0 percent, to 22,884.49, the highest close since August 20. The China Enterprises Index gained 2.1 percent, to 10,546.06 points.

During Oct. 26-29, Beijing will hold a key meeting to help draft the next five-year plan for China’s economic and social development.

Expectations have been building that the government will announce new measures to aid a struggling economy, including more infrastructure investments and further monetary easing.

Source : Bloomberg