Chinese Stock Markets Poised For Major Bullish Reversal
The Shanghai Composite Index rose toward a bull market as government support underpins a rebound from China’s $5 trillion stock rout.
Asian emerging-market currencies slipped against the dollar and Australian bonds dropped as Federal Reserve Chair Janet Yellen signaled a possible interest rates increase next month.
The Shanghai gauge was set to close more than 20 percent above its Aug. 26 low, meeting some investors’ definition of a bull market.
South Korea’s won and Malaysia’s ringgit led declines as the Dollar Spot Index traded near its highest levels since March. Australian 10-year yields rose for a sixth day Thursday, tracking global bond losses.
China’s extreme measures to prop up the stock market, as well as deep cuts to interest rates and banks’ reserve ratios, have restored almost $1.5 trillion in value to the nation’s equities since their August nadir