The national team buys cheap

Asian stocks posted strong gains, with Japan, South Korea and Hong Kong performing best, while India and Thailand were rare outsiders.

Chinese policymakers have previously said that the 3,100-point level for the Shanghai Composite and the 1,900-point level for the Shenzhen Composite are important boundaries. When these levels were exceeded, market stimulus measures were announced and reintroduced.

Today we see that Central Huijin Investment Ltd, a unit of China's sovereign wealth fund, has increased its stake in four Chinese banks: the Bank of China, Agricultural Bank of China, ICBC and China Construction Bank. The Chinese government is telling you to buy stocks and today they put money into stocks themselves. Even though it's only $68 million, they said the position will be increased over the next six months. Banks are major players in the market and have a significant impact on the indices. Central Huijin has stakes in more than a hundred publicly traded companies, including Kweichow Moutai, Wuliangye and Midea.

At the same time, foreign investors have invested $906 million in stocks in mainland China. Hong Kong also posted growth amid strong trade.

China continues to improve diplomatic relations with the U.S., extending them and inviting Americans to international military forums.

Japanese retailer Fast Retailing said its revenue in China rose 15.2 percent to 620.2 billion yen and operating profit rose 25 percent to 104.3 billion yen. The company noted that sales in the region declined in the first half of the year due to COVID-19, but recovered stronger than expected in the second half of the year. Hang Seng and Hang Seng Tech indexes also posted gains amid higher trading volume.