The benchmark index for Chinese stocks listed in Hong Kong rose 20 percent from this year’s low after valuations fell to the cheapest levels since 2008 and data signaled economic growth is accelerating.
Trading patterns suggest the worst may be over for the Australian dollar after plunging 9.8 percent in the past six months, as the Reserve Bank approaches the end of its interest-rate cutting cycle and China’s economy recovers.
Wall Street’s biggest firms are predicting intensifying bond losses in emerging markets, where borrowing costs have already soared to the highest in more than four years versus U.S. corporate debt, as the Federal Reserve considers curtailing record stimulus.
China’s government may cut the country’s annual growth target to 7 percent next year, although the actual pace of expansion will be higher, according to Fan Jianping, chief economist at a state research institute.
China’s plans to elevate Shanghai’s role through looser controls on capital flows and expanded foreign investment drove share gains in companies tied to the city, Hong Kong’s main rival as the nation’s financial center.