Hong Kong and Shanghai ploughed on with their China-fuelled rally Friday on hopes that Beijing will press on with new plans to boost the world's number two economy.

A string of announcements this week has seen leaders cut interest rates, pledge support to the beleaguered property sector, free up banks to lend more and pledge to boost jobs, particularly for the poor.

While analysts have warned that the measures — the boldest in years — will not on their own be enough to get the economy back on track, they have provided some much-needed cheer to investors and raised hopes that the government is listening to calls for major help.

They also come amid a more upbeat mood on trading floors after the Federal Reserve's bumper rate cut last week and indications that more were in the pipeline through to 2026. The bank's policy outlook will be in focus later Friday with the release of its preferred gauge of inflation.

On Friday, Chinese officials said they had cut the amount of cash banks must hold in reserve in a bid to get them lending more to revive economic activity — a move that would pump more than $140 billion into financial markets.

Meanwhile, a Bloomberg report said on Thursday that Beijing is considering pumping a similar amount into the country's large state-run banks in the first such move of support since the global financial crisis.

"Beijing seems finally determined to roll out its bazooka stimulus in rapid succession," said Nomura chief China economist Ting Lu.

"Beijing's recognition of the severe situation of the economy and lack of success in a piecemeal approach should be valued by markets," he said in a note.

Hong Kong soared more than three percent in opening trades before paring the gains, while Shanghai was also sharply higher — both markets are now up around 10 percent from Friday's close.

Property stocks were again among the best performers in Hong Kong, with beaten-down developers enjoying some much-needed interest. Kaisa surged more than 40 percent, Fantasia rose more than six percent and Sino-Ocean added five percent.

Tokyo, Sydney, Wellington and Taipei also rose but Singapore, Seoul, Manila and Jakarta dipped.

Stephen Innes, managing partner at SPI Asset Management, said: "Chinese stocks are sizzling, setting the stage for their best week in a decade, and the ripple effect is being felt across global markets. Risk assets everywhere are catching fire.

"However, this momentum might hit a speed bump on Friday as traders could look to lock in profits ahead of the weekend," Innes said.

With the end of the quarter coming and China's markets closing for a holiday from October 1 to 7, caution may creep into the market, he added.

"Profit-taking could cool things down, but the bullish mood is undeniable for now."

Crude prices extended losses as expectations for a bump in output from Libya offset renewed hopes for China's economy and worries about the crisis in the oil-rich Middle East.

Van Gogh painting falls short of expectations in Hong Kong auction
Hong Kong (AFP) Sept 26, 2024 –

A Vincent van Gogh painting displaying the artist's shift from dark realism to vibrant impressionism sold for US$32.2 million at a Hong Kong auction on Thursday, falling short of expectations that it would fetch a record-breaking price.

"Les canots amarres" — or "the moored boats" — was the centrepiece of an inaugural evening sale held to celebrate the opening of auction house Christie's new Asia Pacific headquarters.

According to Christie's, it was expected to fetch HK$230-380 million (US$30-50 million) on the auction floor.

If bidding had reached the higher end of the estimated value, it could have surpassed Jean-Michel Basquiat's "Warrior" — which went for HK$323.6 million in 2021 — as the most expensive Western painting sold in Asia.

But the hammer of auctioneer Adrien Meyer fell Thursday at HK$250 million.

Cristian Albu, deputy chairman and head of 20th/21st century art at Christie's Asia Pacific, said the price was the "record of a Van Gogh in Asia".

The auction house was "cautious" with its lineup on Thursday in hopes of boosting market confidence, added Ada Tsui, head of evening sale and specialist for 20th/21st century art.

Owned by the Italian royal family of Bourbon Two Sicilies, the Van Gogh painting is "the most important painting by the artist ever to be offered in Asia", Christie's said in its introduction.

"'Les canots amarres' marks a vital stepping stone in his career," it said.

The painting is one of about 40 works Van Gogh developed around the scenic French town of Asnieres, a boating hub on the outskirts of Paris, during the summer of 1887.

With those paintings, "he left behind for good the dark, earthy tones of his realist pictures of old. He now adopted a vibrant palette and loose expressive brush instead," said Christie's.

In a letter to his sister Willemien in October 1887, the artist wrote: "When I painted landscape in Asnieres this summer, I saw more colour… than ever before."

Princess Camilla of the House of Bourbon Two Sicilies called it a painting "of incredible history in the very particular moment of the artist's (career)", according to Hong Kong's South China Morning Post.

She said she chose the Chinese city for the sale to tap into the Asian market's "strong and expanding base of collectors who are increasingly interested in Western art".

Born in the Netherlands in 1853, Vincent van Gogh was among the most famous and influential figures in Western art. He created around 2,100 pieces, including about 860 oil paintings, in a career that lasted only a decade before his death in 1890.

Christie's high-profile auction on Thursday also featured 45 other masterpieces from the 20th and 21st centuries — ranging from the French impressionist painter Claude Monet to the England-based street artist Banksy.

"Nympheas" by Monet sold at just shy of US$30 million, also near the low end of the estimate.