Chinese stocks advanced on Tuesday for a second day after Beijing ushered in stimulus measures boosting capital markets. While short-term gains for Alibaba and others will be welcome, they don’t overcome longer-term gloom over China’s economy.
Gains across widely held Chinese tech names are representative of an upbeat day in Asian trading, with Hong Kong’s Hang Seng Index gaining 2%, the Shanghai Composite surging 1.2%, and Tokyo’s Nikkei 225 moving 0.2% into the green. “For now, this extra help has boosted sentiment. But underlying questions still remain over the fragility of China’s economy,” said Susannah Streeter, an analyst at broker Hargreaves Lansdown.
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