Asian Stocks Firm as Beijing’s Efforts to Support Markets Face Uncertainty

Asian stocks rose on Wednesday as investors awaited the outcome of China’s efforts to stabilize its struggling share markets. China has implemented further restrictions on short selling, and state investors have expanded their stock purchasing plans. The blue-chip index inched up 0.2% in early trade, while Shanghai stocks added 0.1%. Investors remain cautious about the efficacy of these measures and uncertainty remains about the government’s long-term approach to the markets. The broader Asia-Pacific shares outside Japan also saw gains, rising by 0.7% to reach a five-week high. However, Japan’s Nikkei dipped 0.1%. The likelihood of U.S. interest rate cuts remains uncertain, with Federal Reserve Presidents indicating that additional work is required before any policy changes can be made. Treasury bonds experienced a bounce, leading to a dip in 10-year yields. The U.S. dollar retreated while the euro remained relatively unchanged. Oil prices were supported by a lowered projection for U.S. output growth.