China's Monetary Boost: Emerging Markets Rebound

Emerging market stocks rose, led by China, after the Chinese central bank introduced funding schemes worth 800 billion yuan. The CSI 300 and Shanghai Composite saw significant gains, while Hong Kong's Hang Seng climbed over 3%. Despite gains, EM assets faced pressure with mixed economic signals globally.

Emerging market stocks experienced an uplift on Friday, thanks to influential gains in China and Hong Kong shares. This surge followed the Chinese central bank's announcement of new funding schemes aimed at strengthening its stock market, alongside a weaker dollar aiding most currencies.

Chinese equities soared after the central bank introduced two novel funding schemes, initially injecting up to 800 billion yuan into the stock market through fresh monetary policy tools. Notably, the blue-chip CSI 300 and the Shanghai Composite Index rose by 3.6% and 2.9% respectively. Meanwhile, Hong Kong's Hang Seng closed with an increase of more than 3%.

Although the broader MSCI index for emerging market stocks increased by 1.7% as of 0825 GMT, they faced a downward weekly trend. This follows a week dominated by investor expectation of further Chinese stimulus efforts to support its ailing property sector.

(With inputs from agencies.)