Asian Markets Rally as China Unveils Consumption-Boosting Measures

Stimulus Efforts Overshadow Concerns Over Trump’s Trade War

Asian stock markets closed mostly higher on Friday (14) as China's latest measures to stimulate domestic consumption outweighed growing concerns over the trade war ignited by the Trump administration.

Among Chinese markets, the Shanghai Composite Index surged 1.81% to 3,419.56 points, reaching its highest level this year, while the smaller Shenzhen Composite gained 2.05% to 2,109.37 points. Hong Kong’s Hang Seng Index followed suit, rising 2.12% to 23,959.98 points.

China’s financial regulator issued a statement urging banks and financial institutions to encourage consumer financing and credit card usage. This initiative is part of a broader campaign to boost spending in the world’s second-largest economy. The announcement came just days after the conclusion of China’s annual parliamentary session, fueling expectations that Beijing will introduce further pro-consumption policies in a press conference on Monday (17).

Broad Gains Across Asia

Elsewhere in Asia, Japan’s Nikkei 225 climbed 0.72% in Tokyo, closing at 37,053.10 points, while Taiwan’s Taiex registered a marginal 0.03% gain, finishing at 21,968.05 points. However, South Korea’s Kospi bucked the trend, slipping 0.28% to 2,566.36 points in Seoul.

Despite a generally upbeat market sentiment, ongoing developments in U.S. trade policy remained on investors’ radar. On Thursday, President Donald Trump threatened to impose a 200% tariff on distilled beverages from the European Union in retaliation for the bloc’s recent decision to levy a 50% tariff on American whiskey.

Australia Joins the Rally

The positive momentum extended to Oceania, where Australian markets mirrored Asia’s gains. The S&P/ASX 200 in Sydney rose 0.52% to 7,789.70 points, snapping a three-day losing streak.

With risk appetite returning, investors are looking ahead to Beijing’s anticipated policy announcements next week, while keeping a close watch on escalating trade tensions between the U.S. and its key partners.