Chinese stocks including Ali Baba (Baba), JD.com (Jordanian dinar) And Baidu (Bedo) is on the rise early Friday after mixed economic data and new stimulus. Commodity stocks affected by China such as the copper giant Freeport-McMoRan (FCX) and miscellaneous miners Rio Tinto (Rio) And BHP Group (BHP) continued its recent momentum, supported by a weaker dollar following a pivotal Fed meeting on Wednesday.
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Industrial production rose to a 21-month high of 6.6% year over year in November, compared to 4.6% in October, and beating expectations. However, retail sales beat expectations, with a 10.1% year-on-year increase supported by weak data a year ago before China fully abandoned its Covid-free policies.
Chinese officials have also taken more steps to revive economic growth. The People’s Bank of China is providing a record 800 billion yuan (about $112.40 billion) in one-year loans to the banking system, double estimates. On Thursday, Beijing and Shanghai lowered home purchase payments, while Beijing extended the maximum mortgage term to 30 years from 25 years. These moves are part of an attempt to support falling house prices and the loss of confidence in the real estate market, which continues to deteriorate. Pulling the economy down.
So far, the bet that Chinese stimulus will revive stocks has largely been a bust, although some major stocks have performed well.
Alibaba, JD Stocks Bounce
BIDU shares rose 1.7%, BABA rose 3.2%, and 5.2% at midday on Friday. However, those shares were about 30%, 40% and 60% below their 52-week highs through Thursday’s close. Ev arrogant New (New) by 1.2%, but it lost more than half its value.
but, PDD Holding (PDD), which added 1.5%, to its highest level in two years.
However, Chinese stocks were generally mixed. Hong Kong’s Hang Seng Index rose 2.4%, and the Shanghai Stock Exchange Composite Index fell 0.6%.
Shares of non-Chinese mining companies that may benefit from an improving Chinese economy were mixed early Friday. FCX stock, which jumped 7% to clear an early entry point on Thursday, fell 0.6%. But BHP and RIO, both major iron ore producers, rose 0.2% and 0.6%, respectively. Both BHP and RIO cleared early entries earlier in the week.
Be sure to read IBD’s Big Picture column after each trading day to get the latest trends in the stock market and what they mean for your trading decisions.
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