President Xi’s speech injects fresh dosage of investor confidence into Asian economy
Asian shares experienced gains, then stabilized on Wednesday due to anticipation surrounding President Xi Jinping’s somewhat insightful speech at China’s 19th annual Communist Party Conference. This rare event only happens twice a decade however lots of anticipation has surrounded the ongoing conference that is likely to confirm the premier’s position of power.
In the address, Xi hinted that the he will allow the market to play ‘a decisive role in allocating resources.’
Although this statement is somewhat vague, many investors are interpreting it as an even more free market capitalist approach to the biggest economy in Asia. Something else that may have boosted investor confidence in China, is the fact that the US refused to cite China as a currency manipulator. However, criticism has been heard from the halls of Washington in lieu of President Trump’s upcoming trip to Beijing.
As of late, economic data coming out of China has been overall positive. This has led to a bearish trend that has ultimately benefited shares throughout the People’s Republic.
Meanwhile in Japan, the country’s leading index, the Japan 225, climbed 0.1 percent in an effort to consolidate their 12th consecutive session of gains. This could have something to do with the fact that the current Japanese prime minister, Shinzo Abe, is estimated to win a two-thirds majority in their forthcoming election which will happen on October 22.
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