MARKETS: Asia in strong traction with stimulus news

Asian stock markets were mostly in a strong rise on Tuesday morning Finnish time. In the background there are several recovery news from China.

Prime Minister of China Li Qiang stated the news agency Bloomberg’s according to that there would still be “quick room” for recovery. Qiang made the comment at the China International Import Expo.

Sentiment was also boosted by the fact that the country’s central government is planning to reduce the financial burden on local governments. According to Bloomberg, the background would be the transfer of off-balance sheet debt to the balance sheet. This, in turn, would give room for raising the debt ceiling, Bloomberg estimates.

China’s recent purchasing managers’ index for the services sector was also stronger than expected, crossing the 50-point growth mark for the first time since July.

The CSI 300, which describes the performance of the most traded stocks in Shanghai and Shenzhen, was up 2.5 percent, while in Hong Kong the Hang Seng was up 1.4 percent. In Japan, the Nikkei had risen by 1.3 percent, but in Korea, the Kospi had fallen by 0.5 percent.

Despite the stimulus news, the hottest topic of the day in the market is the US presidential election.

According to crypto exchange Polymarket, investors are currently expecting the Republican candidate Donald Trump would win with a 59 percent probability. Democrats Horrible Harris the winning probability is 41 percent.

The probabilities have varied considerably in recent days. Harris’s probability was at its highest a few days ago at 47 percent, but has turned down again.

There has been talk in the media lately that betting coefficients would be used to influence opinion. However, historically, the market has been relatively effective in predicting the winner. Since 1872 according to the market, the most likely candidate has won 77 percent of the presidential elections.

At 08:26, one euro was worth 1.09 dollars, 165.8 yen, 0.84 pounds and 11.7 Swedish kronor. The dollar was 152.4 yen and the pound was 1.30 dollars.

Futures anticipate an upward opening for Europe and Wall Street. Euro Stoxx 50 futures were up 0.06 percent, while the US S&P 500 was up 0.07 percent.