• Disappointing US jobs data took its toll on the Asian markets during early trade
  • Hong Kong and Mainland China markets surge
  • PBOC Governor hints the bank could slash the reserve requirement ratio

After a tepid start during the early morning session on March 11, 2019, Asian markets stocks finally broke through the longest stock markets dry spell since November 2018, reports Asian Review.

ASX Feels the Jitters of Slowing US and China Economy

As earlier reported by Blockchain Reporter, below-par data pertaining to US and China job growth started a knee-jerk reaction through the Asian and Australian markets on Monday.

Following a downward movement in the US markets on Friday, the Australian stock market plunged by as much as 0.3 percent during early trade today. What caused the fall was the shockingly low figures of data from US Non-Farm Payrolls which stated that out of a forecasted 180,000 new jobs in February 2019, a mere 20,000 were actually realized.

However, shares in Hong Kong and mainland China witnessed resurgence as trade continued on Monday.

Mainland China and Hong Kong Shares Rise

Tracking a rise in mainland China equity shares, shares of Chinese companies listed in Hong Kong’s Hang Seng Index appreciated on Monday, breaking through their worst weekly decline since November 2018.

Hong Kong’s HSX gained 1 percent to reach 28,503.30 points after declining by 2 percent in the previous week. Some of the biggest gainers on the Hang Seng Index included Tencent Holdings, which surged by 2.3 percent on the back their adventure-themed game Xun Xian getting a license for monetization from China’s national broadcasting regulator. Insurance company AIA Group also recorded a considerable gain by adding 2.4 percent to its share value.

Similar upward traction was observed in mainland China as the Shanghai Composite Index climbed 1.9 percent on Monday. This came after Yi Gang, the governor of People’s Bank of China declared on Sunday that China could cut banks’ reserve requirement ratios. For the uninitiated, the reserve requirement ratio simply means the amount of money banks must hold with themselves against their total liabilities in the balance sheet.

Notably, the PBOC revised this ratio five times in 2018 over concerns of slow economic growth in China.

Frankie Chan, a senior research analyst at Emperor Securities, said:

“Negative outlook for a slowdown in China’s economy and international trade has been priced in last year, and the market should now price in the second-half economic recovery.”

He added that he expects the Hong Kong stock market to rise steadily in the medium term.

Some of the other companies on the HKX that recorded gains were Hong Kong International Construction Investment Management, Future Land Development Holdings, Uranium trader CGN Mining, which surged 13 percent, 14.3 percent, and 11.3 percent, respectively.

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