Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Brent Oil Jumps 16% for Best Week Since April as US-Iran Conflict Fuels Supply Fears 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China’s Economic Stimulus: $1.4 Trillion Debt Relief Amid Slowing Inflation
In October, China’s consumer prices grew at a slower pace, while deflation deepened in its manufacturing sector. This economic slowdown has led Beijing to intensify stimulus measures, aiming to stabilize its economy.
Slowing Inflation and Rising Deflation
According to China’s National Bureau of Statistics, the consumer price index (CPI) in October rose just 0.3% year-over-year, down from September’s 0.4% increase and the lowest growth rate since June. This fell short of the 0.4% forecast by economists in a Reuters poll, while on a month-to-month basis, CPI dropped by 0.3% after remaining flat in September, below the projected 0.1% decline.
The producer price index (PPI), which tracks factory-level inflation, decreased by 2.9% year-over-year, marking a deeper drop than the 2.8% decline in September. This figure also fell short of the expected 2.5% decline, signaling increasing deflationary pressure on Chinese manufacturers.
Government’s $1.4 Trillion Debt Relief Package
China has announced a 10 trillion yuan ($1.4 trillion) package focused on reducing "hidden debt" among local governments to combat these economic challenges. Rather than injecting liquidity directly into the economy, this package seeks to provide structural debt relief, allowing local governments more financial flexibility to support economic activity without adding further inflationary pressure.
Conclusion
With consumer prices slowing and producer deflation deepening, China's economic outlook remains uncertain. However, this significant debt relief measure reflects Beijing’s commitment to tackling underlying fiscal pressures to stabilize growth.
