China stocks surge amid upbeat inflation data
On Monday, Chinese shares edged up following expectations that moderate inflation leaves enough freedom for the government to boost the national economy via further monetary easing.
The Shanghai Composite Index traded at 3,038.78, showing a 1.8% soar.
Apart from that, in Japan, where its currency hit a new high against the greenback, the Nikkei Stock Average dropped by approximately 1.3%.
Stocks in Japan and China have markedly altered in their performance for the last month as the BOJ and the People’s Bank of China faced quite opposite challenges.
Financial analysts as well as market participants actually believe that Chinese central bank has effective tools to east its current monetary policy. For instance, the major bank could get down to rate cuts. However, Japanese statesmen don’t have enough options after they’ve recently moved to negative rates.
As Monday’s data states, China’s consumer inflation grew 2.3% in March, the same as February’s outcome. In general, inflation is still ranging below the government’s target ceiling.