Chinese stocks blew up on suspicions of state intervention, as well as rumors that trust fund accounts might not have to be liquidated
Asian stocks bounced overnight, following the
bullish lead of U.S. markets ahead of the
Fed's two-day policy meeting. China's Shanghai Composite caught fire late in the session -- ending 4.9% higher amid suspected state buying, as well as rumors that trust fund accounts might not have to be liquidated. Hong Kong's Hang Seng and South Korea's Kospi jumped 2.4% and 2%, respectively, with the latter boosted by foreign buying. Rounding out the group, Japan's Nikkei added 0.8%, as exporters rallied -- while
Standard & Poor's downgraded the nation's sovereign debt rating, citing massive government debt.
European markets are solidly higher today, as traders take a risk-on approach ahead of the Fed's meeting and digest a cooling inflation rate. London's FTSE 100 is up 1%, with M&A rumblings putting SABMiller center stage -- and sending its stock 23% higher. On the data front, U.K. unemployment held at 5.5%, and weekly earnings grew 2.9% year-over-year. Elsewhere, the French CAC 40 and German DAX have tacked on 1.5% and 0.7%, respectively.
