Asian equity markets roared higher on Tuesday, fueled by speculation that China’s State Council is finalizing a $220 billion stimulus package targeting its beleaguered property sector. The Nikkei 225 soared 2.8% to a historic close of 42,500, while Hong Kong’s Hang Seng Index surged 3.1%, led by rebounds in tech and property stocks.

Stimulus Details (Unconfirmed Reports):

• Property Sector Lifeline: $150B in low-interest loans to developers like Evergrande (+18%) and Country Garden (+15%).

• Consumer Subsidies: $50B in tax breaks for homebuyers and appliance upgrades.

• Infrastructure Boost: $20B for smart city projects in 30 Tier-2 cities.

Market Reactions:

• Japan: Exporters rallied on yen weakness (USD/JPY at 158), with Toyota (+4.2%) and Sony (+5.1%) leading gains.

• China: Tech giants Alibaba (+6%) and Tencent (+4.5%) rebounded after Beijing signaled softer regulatory scrutiny.

• South Korea: Samsung (+3.8%) lifted the KOSPI 1.9% after forecasting 40% YoY growth in AI chip sales.

Analyst Insights:
“This stimulus could stabilize China’s property crisis, but execution is key,” said Nomura’s Chetan Ahya. “If funds are misallocated, we risk another debt spiral.”

Risks Ahead:

• Stimulus Delay: No official announcement from Beijing yet.

• Global Inflation: Oil prices (Brent at $85) could dampen consumer spending.