Chinese stocks climb; dollar steady before US inflation test

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Inflation Data,Fiscal Stimulus,Capital Markets

Asian stocks got a lift on Thursday from Chinese stocks as China's central bank kicked off its 500 billion yuan facility to spur capital markets, while the...

SINGAPORE - Asian stocks got a lift on Thursday from Chinese stocks as China's central bank kicked off its 500 billion yuan facility to spur capital markets, while the dollar lingered near a two-month high ahead of U.S. inflation data later in the day.

"It’s likely that if and when we get more details on the scale of spending, other policymakers will be better able to start to roll out supportive policies relevant to their functions," said ING economists in a note on Thursday. "The ultimate goal for the Chinese market isn’t to create sudden rallies. It’s all about wanting to inject confidence in the economy domestically, to relieve pressure on the real estate market. Their end objective is domestic stability," said Henry Wu, head of XTrackers Products US.Overnight, the S&P 500 and the Dow closed at record highs after the release of Federal Reserve meeting minutes and ahead of September inflation data.

Investor focus will be on inflation data on Thursday in the form of the consumer price index for insight into the Fed's rate path, while the corporate earnings season kicks off with bank earnings on Friday. The shifting U.S. interest rate expectations have boosted the dollar, with the dollar index, which measures the currency against six key rivals, steady after climbing to the highest since Aug. 16 overnight. In commodities, oil prices were higher as investors contended with rising tensions in the Middle East and its impact on oil supply, as well as a spike in demand as a major storm barrelled into Florida.

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