China Stocks Rally the Most in a Month on Local Stimulus Steps
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China’s beaten down stocks posted their best gains in weeks on news local governments will have more room to spend on infrastructure, offsetting U.S. President Donald Trump’s latest threat of more tariffs.
The Shanghai Composite Index climbed 2.6%, the most since May 10, though volume was only a little over half the three-month daily average and the benchmark is still down about 10% in the past two months. Construction-related stocks rallied after the finance ministry said Monday it would ease restrictions on the spending of proceeds from special bond sales and encourage banks to offer loans to projects funded by such debt. The yuan rose after the central bank set the daily reference rate stronger than expected.