Asian Stocks Rise on China's Fiscal Spending Plans

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ASIA,STOCK MARKET,CHINA

Most Asian stocks climbed on Wednesday after a report indicated China will increase fiscal spending in the coming year, though gains were tempered by caution ahead of the Federal Reserve's rate decision. U.S. stock futures remained stable in Asian trading, with all eyes on the Fed. While a rate hike is anticipated, the central bank is also expected to signal a slower pace of tightening in 2025, potentially impacting risk-sensitive markets. Additionally, central bank meetings in Japan, Thailand, Indonesia, and the Philippines are scheduled this week.

Investing.com-- Most Asian stocks rose on Wednesday after a report suggested that China will target increased fiscal spending in the coming year, although caution before a Federal Reserve rate decision limited gains.U.S. stock index futures were flat in Asian trade, with focus squarely on the Fed. While the central bank is widely expected tolater in the day, it is also expected to signal a slower pace of easing in 2025- a trend that could herald pressure on risk-driven markets.

Reuters reported that Beijing will raise its budget deficit to 4% from 3% of gross domestic product in 2025- its highest on record, and will also target GDP growth of 5% for a third consecutive year. The additional 1% GDP point indicates about 1.3 trillion yuan in additional spending, the Reuters report said. China will also fund more stimulus through debt issuances.

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