Asian markets higher after China promises more pro-active approach to spending
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Asian markets were mostly on the upswing on Tuesday, with Chinese markets recording gains of over 1% following the Chinese finance minister's pledge for a more proactive approach to government spending in the forthcoming year. US futures remained relatively stable in subdued Christmas Eve trading, while oil prices saw an increase. Japan’s benchmark Nikkei 225 experienced a slight dip of 0.3% to 39,036.85.
Shares in Honda soared by more than 12.2% as the Japanese car manufacturer announced a share buyback worth up to 1.1 trillion yen ($7bn) after revealing on Monday that it was pursuing a merger with its larger but beleaguered competitor Nissan. The two firms confirmed they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors Corp. had also agreed to join discussions about integrating their businesses.
Nissan's shares climbed by 6%. The Hang Seng in Hong Kong increased by 1.1% to 20,098.29 and the Shanghai Composite index rose by 1.3% to 3,393.53. Chinese Finance Minister Lan Fo'an assured at a financial work conference that Beijing will boost the fiscal deficit in 2025 and ramp up spending, issuing more government bonds and increasing transfers to local governments to help ensure they can deliver guarantees to the public for housing, heating and food, according to the ministry's website.
These remarks are the latest from top leaders aimed at alleviating concerns over the slowing growth of the world's second-largest economy. South Korea's Kospi index dipped by 0.1% to 2,440.52 following a sharp drop in consumer sentiment in December after President Yoon Suk Yeol declared martial law and was subsequently impeached by lawmakers. Meanwhile, Australia's S&P/ASX 200 saw a slight increase of 0.2%, settling at 8,220.90.
