Stocks buoyed by China stimulus, Fed outlook hopes: Markets wrap

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Spot gold rose 0.3% to $1 944.95 an ounce.

Stocks in Asia advanced as traders bet that China’s latest property stimulus measures will aid the economy and data suggested that US interest rates may be approaching a peak.

The Chinese government last week said it will allow the nation’s largest cities to cut down payments for home buyers and encouraged lenders to lower rates on existing mortgages. The nationwide minimum down payment will be uniformly set at 20% for first-time buyers and 30% for second-time purchasers. Beijing and Shanghai followed through by lowering mortgage requirements for some homebuyers, while home transactions in China’s biggest cities soared over the weekend.

Sentiment was further propped up by news that distressed Chinese builder Country Garden Holdings Co won approval from creditors over the weekend to extend a maturing yuan bond. Its shares jumped. However, the developer has just days to avoid default on some dollar bonds. Cooling This year’s US stock market rally is strong enough to withstand another leg higher for bond yields, according to the latest Markets Live Pulse survey. Also, just over 50% of survey takers expect the positive relationship between equities and bonds to turn negative by the end of this year, reverting to the long-term trend of this century.

 

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