Daily FNArena News - International

In a move to cool the stock market, China announced an increase to stamp duty at midnight last night. Will this be taken badly?

Most experts see little impact from China’s move to widen its currency trading band but Danske Bank suggests it gives an extra policy alternative leading into trade talks with the US.

The People’s Bank of China has lifted interest rates and tightened reserve requirements but the experts see the moves as having little impact on liquidity levels.

Chinese inflation remains in check despite strong economic growth but DBS Group suggests monetary policy is too loose given current asset prices so eventually it will spike higher.

Further reform of the Chinese financial landscape has been announced. Expect more tightening as well.

Inflows of capital throughout Asia are growing as the region is an increasingly attractive investment destination and economies should benefit as the inflows aid development.

The People’S Bank of China has again lifted bank reserve requirements but the experts see it as a less effective policy move than lifting interest rates and allowing the currency to appreciate.

Westpac agrees with the market that the Bank of Japan won’t lift rates this week, but expects increases in coming months given the economic outlook remains positive.

A stronger than expected quarterly growth outcome of 11.1% has the market anticipating further tightening measures for the Chinese economy, but any changes are unlikely to be rushed through.

Gavekal Research suggests the boom in Chinese equity markets is far from over. The Chinese government could benefit by giving investors exposure to foreign markets as well.