Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
China's 10 Trillion Yuan Stimulus Package: Insights and Implications
China is reportedly on the verge of approving the issuance of over 10 trillion yuan (approximately $1.4 trillion) in additional debt over the coming years to boost its fragile economy. This fiscal package may gain further momentum if Donald Trump wins the upcoming presidential election on November 5.
Analyst Perspectives on the Fiscal Strategy
Tommy Xie, OCBC Bank, Singapore
Xie emphasizes that the current policy is primarily focused on managing the local government's hidden debts while ensuring financial stability. He highlights concerns about the financing of the debt swap, noting that merely converting hidden debts to on-balance-sheet obligations may not suffice to enhance local government expenditures.
Gary Ng, Natixis, Hong Kong
Ng points out that while the stimulus size aligns with market expectations, it may function more as a painkiller than a true economic booster. He stresses that the timing and application of bond issuance will be crucial for assessing its impact on growth.
Alvin Tan, RBC Capital Markets, Singapore
Tan highlights that the effectiveness of the fiscal package hinges on how the debt will be utilized. If a significant portion goes toward local government debt restructuring, the net fiscal impact may be less substantial than anticipated.
Louis Kumis, S&P Global, Hong Kong
Kumis believes that the stimulus should bolster confidence and stimulate growth. However, he warns that unless funds are directed toward idle land and property, the housing market's stabilization may remain elusive.
Lynn Song, ING, Hong Kong
Song indicates that if the stimulus package is indeed approved, it could meet investor expectations, especially if a notable sum is allocated to support the property market.
Conclusion
China's potential 10 trillion yuan stimulus package aims to address pressing economic challenges. While analysts offer cautious optimism, the true efficacy of this initiative will depend on its implementation and focus areas.
