Traders are keenly awaiting the release of key US inflation data later in the day – Copyright GETTY IMAGES NORTH AMERICA/AFP SPENCER PLATT
The rally in Asian markets petered out Friday, with profit-takers paring three-day surges in Hong Kong and Shanghai as traders await more guidance on China’s plans to support the country’s battered economy.
The tepid display came despite more record finishes for the Dow and S&P 500 in New York fuelled by forecast-beating US growth data and news that a key inflation gauge remained in line with the Federal Reserve’s target.
Hong Kong soared more than eight percent and Shanghai more than five percent from Tuesday to Thursday on news that Alibaba’s co-founders had bought huge stakes in the firm and pledges by Beijing to help shore up markets and introduce economic support measures.
A decision by the People’s Bank of China to cut the amount of cash banks must keep in reserve, to boost lending, provided a further lift to confidence.
However, analysts warned the government needed to provide