Asian stocks rose, tracking US stocks, as traders await a batch of economic numbers over the next few days for clues about the expectations of central banks around the world.
The Asian stock index is heading to achieve the highest closing in two weeks, supported by the gains achieved by the main indices in the region. The Hang Seng rose 1.6%, extending its advance for a second day. Chinese stocks outperformed, with the Hang Seng China Enterprises Index up 1.8%. US futures settled after the first consecutive rally for the S&P 500 in August.
However, investors will continue to watch for any signs of additional support measures from the Chinese government. Most of the gains made by local stocks on Monday, fueled by a series of steps to support the market, were erased by the end of the session. Foreign funds expanded their sales to a record outflow this month. Chinese Finance Minister Liu Kun and Chairman of the National Development and Reform Commission Cheng Shanji pledged on Monday to strengthen policy support and accelerate government spending, according to the official Xinhua News Agency.
If policy measures continue to be revealed in the coming weeks, it could restore confidence in the market as policymakers regain their credibility, UBS Global Wealth Management strategists Solita Marcelli and Mark Hefeli wrote in a report.
