Asia: Stocks gain as China cuts red tape for businesses
Asian stocks advanced following news China will cut red tape for businesses.
The world's second-biggest economy will devolve the right to approve some projects to lower-level governments to reduce the cost of doing business.
The cabinet said on Friday it abolished 21 approval processes for sectors including mining, banking, telecoms, civil aviation and shipping.
Meanwhile, a report from the China Securities Journal said China may adopt targeted interest-rate cuts for agriculture sectors, shanty-town redevelopments and small companies.
Hong Kong cut its economic growth forecast for the year after an unexpected contraction in the second quarter. The economy is forecast to expand 2% to 3%, compared with its February prediction of 3% to 4%. Gross domestic product fell 0.1% in the second quarter from the prior three months, missing the consensus forecast for 0.4% growth.
The report is likely to fuel speculation of further stimulus measures by China.
Hong Kong's Hang Seng index rose 0.62% and the Shanghai Composite increased 0.92%. Japan's Nikkei 225 climbed 0.2%.
In corporate news, TCL surged as the electrical appliance maker said it plans to raise 5.7bn yuan in a private stock placement to fund a TFT-LCD production line and to replenish working capital.
Parkson Retail Group, which operates department stores in China, jumped after first-half profit beat estimates.
Keikyu Corp. gained after the Nikkei newspaper reported the railway company aims to enter casino management in Japan.
China Mobile rallied as the phone company said it will cut $2bn from device subsidies.
Rd