Asian stocks are on the rise. Stock markets across Asia and other parts of the world are waiting for the central banks. To be more precise, stocks increased as the central bank are thinking about the stimulus programs. It is no secret that the global economy is slowing down. In this situation, central banks should play a more active role in the global economy.
The trade war, coupled with global economic problems is a serious challenge for the Asian countries. In this situation, stock markets become more vulnerable to economic issues.
Stock markets on September 9
The People’s Bank of China issued a statement on Friday. According to this statement, the central bank will reduce the minimum amount of money which banks should keep in reserve. This is a serious decision as it will boost the economy. Based on this decision banks can allocate 900 billion yuan or $126 billion for long-term spending.
This decision comes at a time when the second-biggest economy is struggling to deal with the problems. Exports fell by 1% in August. Another news is connected with the trade war. The export of Chinese products to the U.S. declined by 16% in August in comparison with August 2018.
Another Asian country which is a problematic situation is Japan. Its GDP growth rate for the quarter was 1.3%. Japan’s central bank’s meeting will take place next week. Investors are waiting for the outcome of this meeting.
As mentioned-above Asian indexes also benefited from this news. China’s Shanghai Composite Index increased by 0.84% to 3,024.74. Hong Kong’s Seng Index rose by 0.1% before losing some of its strength.
Japan’s stock index Nikkei 225 rose by 0.56% to 21,318.42. South Korea’s Kospi index is also in good shape as its share rose by 0.52% to 2,019.55.
The central bank in Asia, Europe, the U.S., and other regions should become more active to boost the global economy.