Asian share markets turns profitable amid hopes of market support by china gov't

Asian share markets turned profitable on Monday amid hopes of market support by the Chinese government. Chinese stocks boosted for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit.

China's tax cuts next year could be worth more than 1 percent of gross domestic product (GDP), a central bank adviser said in remarks published on Monday, in a sign policymakers might be considering another round of reductions.

One of China's leading stock indexes has had its highest daily spike in more than three years following signs that the government will step in to support battered equity markets.

The moves extend a rally that began on Friday and after investor confidence surged on assurances from Beijing.

Blue chips in Shanghai jumped 4.8 percent in the largest daily gain in three years, adding to Friday's bounce on Beijing's pledge of support for the economy and companies.

Stocks had been falling as China's economic growth continued to stutter.

On Friday, top Chinese financial officials - including economic advisor Liu He and the heads of the securities and insurance commissions - issued a statement to buoy investor sentiment in bruised markets.

The moves come as the world's second largest economy faces challenges such as high debt levels and an intensifying trade war with the US.

Data out Friday showed the Chinese economy grew at the slowest quarterly rate since the global financial crisis.

The result was also a drop from the 6.7% rate in the prior quarter, but remains in line with the government's full-year target of about 6.5%.

For years China has pushed to wean itself off exports and rely more on domestic consumption for growth.

At the same time, the government has been fighting to contain ballooning debt driven by a wave of infrastructure development and a housing bubble without hurting growth.

In recent months Beijing has taken steps to support its economy, including cutting capital requirements to boost liquidity and ease the slowdown.

Asian share markets turns profitable amid hopes of market support by china gov't

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