Amidst rumors that China's Ministry of Civil Affairs and Ministry of Finance will offer one-time financial assistance to the extremely poor and orphans before next week's National Day holiday, the stock market in Hong Kong surged.
HK50 Reached The Multi-month High
In the meantime, Xinhua News revealed that to increase employment, the central government has directed the distribution of specific benefits from social security to fresh college graduates who have yet to secure employment within two years of graduating.
With strong gains in every sector, the Hang Seng Index (HSI) hit its highest point in four months.
Concurrently, US futures experienced a significant increase ahead of forthcoming economic data, such as each week's unemployed claims, ultimate Q2 GDP numbers, and the PCE index, following Wall Street's S&P 500 and Dow Jones' lower immediately closing.
Why is HK50 Moving Higher?
Following a Politburo conference on economic conditions, state media reported that China will increase counter-cyclical monetary and fiscal adjustments and work to accomplish full-year targets for social and economic growth. This news caused shares to rise sharply.
Additionally, markets gained momentum following a Bloomberg News report that quoted anonymous sources and stated that Beijing was thinking of giving its largest government-owned banks a capital infusion of up to $1 trillion yuan ($142.48 billion) to strengthen their ability to support the faltering economy.
