The Japanese stock market plummeted 5% today, while China's stock market increased by more than 7% today, up 24% in the last five trading days.
On Monday, the Chinese stock market had a 7.58 percent increase. The 'CSI 300' index, which rates China's blue-chip enterprises, jumped by 7.58 percent to 3984 points when this report was being prepared (11:37 p.m.). The last five trading days have seen an increase in this index of almost 24%. The index is currently at about 3400 points, up from 3212 points on September 23.
Conversely, the Shanghai Composite Index rose to 3309, up 7.16 percent as well. The last five trading days have seen a 20% spike in this indicator. On September 23, the market was trading at 2748 points; by Monday, it had risen to above 3300. While the volatility caused by Israeli attacks in Lebanon persists, there is evidence of fluctuations in oil prices.
Additionally, important US economic data is expected this week. it also covers the employment report. which implies that in November, the Federal Reserve may opt to lower interest rates. As a result, according to Reuters, the market has increased. Conversely, the 'Nekkei 225' index in Japan saw a decline of 5.04 percent. Normalizing interest rates is something that Japan's incoming prime minister supports. However, investors were holding out for more directives from Japan's prime minister. In the past, he has attacked the Bank of Japan's loose policies.
Nonetheless, he stated on Saturday that the current state of the economy calls for a loose monetary policy. Japan's prime minister has endorsed the Bank of Japan's strategy to return monetary policy to normalcy. But its timing and speed remain unclear, according to HSBC analyst Jun Takazawa. "If more stimulus measures are implemented, it can reinforce the rising trend of spending and thus force the banks to gradually increase interest rates," he stated.
However, by the end of October, banks will be instructed by China's central bank to lower mortgage rates for existing house loans by 50 basis points. China's largest stimulus program since the pandemic will be this one.