Markets gyrated today amid confusion over Beijing’s plans for large-scale infrastructure spending programme to save the world’s second-biggest economy from a hard landing.
Reports said that Beijing — which is fighting against slowing growth and a property crash — is set to fast-track its approval of infrastructure investments and had asked for proposals by the end of June.
Shares in Japan — whose biggest export market is China — rose 0.7% while Hong Kong’s Hang Seng gained 1.4%.
IG Markets market strategist Stan Shamu there are increasing expectations that China will relax monetary policy and announce fiscal stimulus measures.
“This has been a predominant theme since Premier Wen Jiabao’s comments showing commitment to keep China’s growth from stalling,” he said.
Wen also extended tax breaks for services companies beyond the end of 2013.
Michael Hewson, analyst at CMC Markets, added: “Infrastructure spending is all very well, but China’s key export market is Europe, which is headed into recession.
“Any spending will only slow down a hard landing for China.”
Manufacturing data which is due on Friday is expected to signal China’s economy slowing for the sixth consecutive quarter.
