Asian stocks steady after China stimulus, euro hurt by Greek woes
Another article from Reuters. I try to maintain informing people about Chinese culture and it has expanded to Chinese politics and economics. As the title of this article states, it also talks about Greece’s possible default on its debts. Since I do not write anything Greek-related, I cut the article short, but you can visit the article’s source (link at the bottom) and read the remainder of the story.
Mon Apr 20, 2015 8:49pm EDT
(Reuters) – Asian stocks were firm on Tuesday after China’s latest step to prop up its faltering economy lifted global equities, while the euro was pressured on growing worries a cash-strapped Greece may default on its debt.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was steady, with the dollar’s gains against some Asian currencies offsetting a rise in stock prices in local currency terms.
The Chinese central bank on Sunday cut the amount of cash banks must hold as reserves in its latest attempt to spur lending and combat a slowing economy. The news followed reports last week about a crackdown on margin lending there, which had sent global equity markets lower on Friday.
“China’s action undid the damage caused by the crackdown (on speculative buying in Chinese stocks on Friday),” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
“Chinese authorities seem to be worried that the stock markets are rallying despite weak economic fundamentals… There could be more stimulus down the road.”