All articles tagged with #stimulus
Japan’s Nikkei 225 climbed to a record as bets on additional fiscal stimulus buoyed markets, with the TOPIX also rising, while China capped gains by raising the minimum margin for stock purchases to 100%, making margin-financed buying more expensive and dampening momentum even as China posted a record trade surplus and supported AI-related activity.
Chinese stocks, including Alibaba, Baidu, and JD.com, fell sharply following disappointing economic data and a warning from President Xi Jinping against reckless growth and local government spending, suggesting potential limits on future stimulus measures despite weak economic indicators like slow retail sales and falling investment. The market decline reflects concerns over China's economic outlook amid Xi's emphasis on high-quality, sustainable development, with major indices and stocks experiencing notable drops.
President Trump proposed using tariff revenue to send $2,000 checks to Americans, which could provide short-term relief but may lead to long-term inflation and economic challenges, including higher prices and potential rate hikes, complicating the Federal Reserve's efforts to control inflation.
A surge in tax refunds is expected in 2026 due to retroactive tax cuts from 2025, potentially increasing average refunds by $557, which could impact the US economy, though uncertainties remain due to political and fiscal issues.
Despite the US economy avoiding a recession and experiencing growth, Washington is implementing large-scale stimulus measures, including new spending bills and potential rate cuts by the Federal Reserve, which raises questions about whether these actions are based on actual economic conditions or political motives, especially given the high levels of national debt and regional economic contractions.
Japan's Nikkei index surpassed 50,000 for the first time, driven by optimism over government stimulus spending and policies focused on growth under Prime Minister Sanae Takaichi, marking a significant milestone in Japan's stock market recovery.
China's Q3 GDP growth is expected to slow to 4.8%, the lowest in a year, due to a property market downturn and trade tensions, prompting discussions of potential stimulus measures amid signs of economic deceleration and ongoing structural reforms.
Markets reacted positively to the election of Sanae Takaichi as Japan's next leader, with the yen weakening and stocks rising, as she advocates for returning to stimulus and easy-money policies reminiscent of Abenomics.
China's economy experienced a significant slowdown in August, with declines in industrial output, retail sales, and fixed-asset investment, raising concerns about a potential further deceleration in the second half of 2025. Despite recent weak data, policymakers remain cautious about implementing major stimulus measures, focusing instead on stabilizing employment and markets amid external uncertainties and internal challenges like overcapacity and deflation.
China's economy grew by 5.2% in Q2, driven by exports outside the US and government stimulus, but faces risks from global trade tensions, sluggish domestic demand, and deflationary pressures, with analysts predicting a slowdown below 4.5% in the latter half of the year.
China's economy likely grew just above its 5% target in Q2, driven by strong exports and fiscal support, reducing immediate pressure for additional stimulus. However, concerns remain over slowing consumption, industrial overcapacity, and property sector struggles, prompting cautious policy outlooks and potential future measures.
Hong Kong stocks, especially H-shares, have outperformed mainland Chinese A-shares in 2025 due to a re-rating of tech and consumption stocks, driven by AI breakthroughs and global rebalancing flows, while onshore markets remain subdued amid economic woes and uncertain stimulus prospects.
China's leadership, led by President Xi Jinping, emphasized plans to boost economic growth through proactive fiscal policies and moderately loose monetary measures at a high-level economic planning meeting. The government aims to maintain a growth target of around 5% for next year, with plans to increase the fiscal deficit and issue more bonds. These measures come amid external challenges, including potential U.S. tariffs under Donald Trump's presidency. The full details of the economic strategy will be announced at the National People's Congress in March.
China is shifting its monetary policy to a 'moderately loose' stance, marking the biggest change in 14 years, as it braces for potential economic challenges from a trade war with the US under Donald Trump. The move signals Beijing's concern over sluggish domestic demand and a festering property crisis. Economists expect further rate cuts and liquidity measures from the People's Bank of China to support growth, while the government aims to boost consumer demand and stabilize the economy without inflating bubbles. The situation is complicated by deflationary pressures and geopolitical tensions.
New York Governor Kathy Hochul has proposed a one-time 'inflation refund' payment of $300 for individuals earning under $150,000 and $500 for families earning under $300,000, funded by excess sales tax revenue. The proposal, aimed at alleviating the high cost of living, will be considered by the legislature in January, with potential payments starting in fall 2025.