Asian Shares Rise On Positive China News

Asian shares made gains on Friday, particularly in Chinese markets, following an announcement by the People's Bank of China that it would reduce the reserve requirements for banks, Yuri Kageyama and Stan Choe reported for the Associated Press (AP).

China's central bank stated that it would implement a 0.25 percentage point reduction in the reserve requirement for banks, effective from the following day.

This move is aimed at encouraging more lending and supporting the slowing economy. Hong Kong's Hang Seng index surged by 1.3% to reach 18,280.11 points, while the Shanghai Composite index also saw a gain of 0.4%, closing at 3,138.94 points.

China's central bank stated that it would implement a 0.25 percentage point reduction in the reserve requirement for banks, effective from the following day.

This decision was made "in order to consolidate the foundation for economic recovery and maintain reasonable and sufficient liquidity."

Adding to the positive sentiment, the Chinese government released a report indicating that China's industrial output had increased by 4.5% in August compared to the previous year, up from 3.7% in July.

This uptick is viewed as a sign that the economy might be emerging from its post-pandemic slowdown.

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