China's Economic Surge: Market Confidence and Rising Indices

Mainland China stocks reached a four-week high as Premier Li Qiang expressed optimism about economic recovery. Positive market sentiment emerged from improved service activities and fiscal tools. However, the U.S. presidential election remains a global market focus, with Trump's tariff policies posited as potential economic disruptors.

Mainland China stocks climbed to a four-week peak on Tuesday, following Premier Li Qiang's optimistic remarks on the nation's economic recovery and recent data indicating improvement.

Speaking at the China International Import Expo, Li assured that China is on track to meet its growth targets, with fiscal and monetary strategies ready if needed. Market sentiment was also buoyed by a private survey revealing a three-month high in China's services sector growth for October.

The global market focused intently on the U.S. presidential election, with close polling between Kamala Harris and Donald Trump. Meanwhile, Trump's promises of hefty tariffs on Chinese goods could raise U.S. inflation, keeping interest rates up and potentially destabilizing trading partnerships' currencies.

(With inputs from agencies.)