China stocks soar in stimulus afterglow; dollar sags on rate bets

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Chinese Stocks,Bank Of China,Dollar Weakness

Chinese stocks surged on Wednesday, lifting regional markets and helping extend a stimulus-fueled global rally that also underpinned risk-sensitive...

Staff lower Chinese national flag in front of screens showing the index and stock prices outside Exchange Square, in Hong KongTOKYO - Chinese stocks surged on Wednesday, lifting regional markets and helping extend a stimulus-fueled global rally that also underpinned risk-sensitive currencies, while Brent crude hovered near a three-week high.

The strong start for Chinese stocks invigorated other regional indexes, with Taiwan's benchmark up 1.3% and South Korea's Kospi gaining 0.1%Japan's Nikkei shook off early weakness to rise 0.3%, helped by a retreat in the yen, a traditional safe haven. The euro ticked up to $1.11915 after earlier pushing as far as $1.1194 for the first time in a month.Overnight, data showed U.S. consumer confidence unexpectedly fell to 98.7 this month from an upwardly revised 105.6 in August. The decline was the largest since August 2021.The odds on another 50-basis point Federal Reserve rate cut at the November meeting jumped to 60.4% from 53% a day earlier, according to CME Group's FedWatch Tool.

Provided the cooling is replicated in quarterly price data next month, "it sets up a dovish pivot from the RBA," leading to a quarter-point rate cut in December, Sycamore added.Brent crude futures slipped 19 cents to $74.98 a barrel, but remained close to Tuesday's high of $75.87, a level previously not seen since Sept. 3.

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