China’s Premier Li Qiang announced on Tuesday that the country’s target for economic growth this year is around 5%, in line with expectations. This news comes as China’s National People’s Congress kicks off, with a focus on bridging funding gaps, supporting local governments, and investing in advanced technology and social support.
In response to Li’s address, Hong Kong’s Hang Seng index fell while Shanghai’s Composite index edged higher. The government’s plan to issue 1 trillion yuan in long-term bonds to support various sectors, including housing and education, was met with mixed reactions from investors.
Despite the positive outlook for China’s economy, the government’s decision to keep its deficit at 3% of GDP disappointed some investors who were hoping for more aggressive fiscal policies. This cautious approach may have contributed to the tepid response in the stock markets, with Hong Kong’s Hang Seng index losing 2.7% and Shanghai’s Composite index rising only slightly.
Meanwhile, in other parts of Asia, Japan’s Nikkei 225 index ended flat, while Seoul’s Kospi and Australia’s S&P/ASX 200 both saw declines. India’s Sensex also declined, while Taiwan’s Taiex gained slightly.
In the U.S., stocks experienced a slight dip following a period of record highs and strong momentum. The focus remains on inflation, interest rates, and the overall health of the economy. Events such as Federal Reserve Chair Jerome Powell’s testimony and the upcoming job market report will be closely watched for further insights into the market’s direction.
Overall, the global market outlook remains uncertain, with various factors influencing investor sentiment. As the week progresses, all eyes will be on key economic indicators and corporate earnings reports to gauge the market’s next moves.
