Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
India Services Sector Rebounds in January as New Business Gains Momentum: HSBC PMI Shows Growth 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Asian Currencies Trade Sideways as Dollar Stabilizes, Yen Weakens Ahead of Japan Election 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
China’s Economic Stimulus: A Comprehensive Plan
China is set to bolster its struggling economy by potentially raising an additional 6 trillion yuan ($850 billion) through special treasury bonds over the next three years. This strategy aims to enhance fiscal stimulus, as reported by Caixin Global on October 14, 2024.
Increased Debt to Stimulate Growth
Finance Minister Lan Foan announced that Beijing will significantly increase its debt to stimulate economic activity. While this declaration has ignited investor interest, the lack of specifics on the size and timing of these measures has led to disappointment. In September 2024, it was reported that China plans to issue 2 trillion yuan ($285 billion) in special sovereign bonds this year as part of its fiscal strategy.
Economic Concerns and Growth Targets
Recent economic data, including trade and lending figures, have raised concerns that China may not meet its growth target of approximately 5% for the year. The property sector's downturn since 2021 has severely impacted local government revenues, revealing an overreliance on land sales to developers for income.
Market Reactions and Expectations
Chinese stock markets initially surged on speculation about the fiscal package but experienced a setback due to the absence of clear details. Analysts believe that the proposed 6 trillion yuan in debt could stabilize economic growth, enhancing the likelihood of achieving the government’s growth targets for 2024 and 2025. Bruce Pang, chief China economist at Jones Lang LaSalle, stated that such measures would significantly increase the probability of reaching the desired growth rate.
Strategic Use of Funds
The anticipated funds are expected to assist local governments in managing off-the-books debts, provide subsidies to low-income households, support the property market, and replenish state bank capital. At the annual parliamentary meeting in March 2024, Premier Li Qiang indicated that ultra-long-term treasury bonds would be issued to fund significant national projects. China's current plans involve issuing 1 trillion yuan in such bonds this year, with expectations for an increase at upcoming legislative meetings.
