Overseas Trading: China Stocks Soar on Stimulus Hopes

Anticipation over the Shenzhen-Hong Kong stock connect, as well as mounting stimulus expectations, boosted stocks in China

Aug 15, 2016 at 8:39 AM
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Stocks in Asia started the week off on mostly solid footing, with Chinese markets proving especially strong. Specifically, the Shanghai Composite roared to a 2.5% win, amid hopes for additional stimulus after an ugly round of data last week and excitement over the Shenzhen-Hong Kong exchange trading link. Expectations are growing that a timetable for the stock connect's opening could be announced as soon as this week.

Elsewhere, Hong Kong's Hang Seng tacked on 0.7%, while Japan's Nikkei sank 0.3% after second-quarter gross domestic product (GDP) data hinted at a stalling economy -- with declining exports and business investment largely to blame. South Korean markets were shuttered for the Liberation Day holiday.

In Europe, stocks are edging higher, helped by a modest rise in oil prices. London's FTSE 100 is up 0.4%, bolstered by JPMorgan Securities -- which reiterated its "overweight" rating on U.K. stocks, citing strong dividend yields and the potential for more monetary easing. Germany's DAX has also advanced 0.4%, getting a lift from Volkswagen shares. Rounding things out, France's CAC 40 has inched 0.1% higher.

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