Egypt posts record EGP629b primary surplus in 2024/25    EGP swings vs. USD in early Sunday trade    EGX launches 1st phone app    Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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China Shares Spark Asia Rally As Reform Plans Buoy Mood
Published in Amwal Al Ghad on 18 - 11 - 2013

Asian share markets advanced for a third straight session on Monday, cheered by the prospect of extended stimulus in the United States and of real economic reform in China.
China's offshore market put on more than 5 percent .HSCE, with UBS upgrading H-shares - Chinese stocks listed in Hong Kong - to "overweight" on a view the reforms announced after a party plenum should help them outperform Asia ex-Japan for the next few months.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 1.4 percent, having boasted its best daily rise in almost two months on Friday.
European shares were expected to open steady to slightly weaker, with Britain's FTSE 100 .FTSE seen down as much as 0.1 percent, Germany's DAX .GDAXI down as much as 0.1 percent and France's CAC 40 .FCHI seen trading flat, according to financial bookmakers.
The Chinese Communist Party unwrapped surprisingly bold reforms late last week, pledging to let the market play a "decisive" role in the economy.
That helped the Shanghai Composite .SSEC rise 2.6 percent, its third straight session of gains, while Hong Kong's China Enterprises Index surged 5.3 percent.
"Multiple growth-friendly measures were announced and represent the biggest freeing up of China's economic policy since the 1990s," said analysts at ANZ in a note.
"Our China economists think that if these reforms are implemented successfully it will substantially reduce the downside risks to China's economy." ANZ added.
Tokyo's Nikkei .N225 was little changed after touching a six-month peak earlier on Monday. Last week, the index amassed its biggest weekly rise in four years.
The Bank of Japan holds a policy meeting on Wednesday and Thursday and is expected to maintain its ultra-loose policy. The BOJ has been perhaps the most aggressive of any major central bank in its asset buying, putting downward pressure on the yen in the process. ID:L4N0J3061
The U.S. dollar was trading at 100.07 yen on Monday, not far from its two-month high of 100.43. The euro bought 135.10 yen but faced major resistance at the October highs around 135.50, a level not seen since November 2009.
The euro was steady on the U.S. dollar at $1.350, having edged slowly higher for the past week or so as tapering talk weighed on the dollar. Measured against a basket of currencies the dollar .DXY was a shade lower at 80.765.
THE FED COMMUNICATES
This is another important week for U.S. monetary policy as there are a host of central bankers appearing, including Federal Reserve Chairman Ben Bernanke, who speaks on "Communication and Monetary Policy" on Tuesday.
On Wednesday, the Fed releases minutes from its October policy meeting, which will get trawled for hints on when it might start winding back its asset-buying program.
Last week, presumptive Fed chief Janet Yellen sounded in no rush to taper, reinforcing market speculation that any move was more likely in March than December.
"If Fed officials think a December tapering is a realistic possibility, some hints to that effect would presumably make their way into the minutes this week," said Michelle Girard, chief US economist at RBS.
"Just making clear that policymakers were open to taking action in December if the economic data showed the impact of the government shutdown was limited would likely suffice to shift expectations."
Girard still believes March is the more likely window for a move, if only because bond markets are typically very thin in December so a taper then could risk major dislocation.
Figures on consumer prices and retail sales are also due on Wednesday and are expected to show that price pressures and spending both were subdued in October.
Speculation over the timing of stimulus tapering has buffeted markets since May when Bernanke first suggested a rollback of the bond-buying program was not far off.
In commodity markets, spot gold was steady at $1,286.80 an ounce, having crawled away from last week's trough of $1,260.89.
Brent crude for January delivery eased 36 cents to $108.14 a barrel. U.S. crude for January shed 37 cents to $93.47, having suffered their sixth weekly drop last week due to a larger-than-expected rise in inventories.
Source : Reuters


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