Asian markets were mostly up Wednesday as investors weighed bullish growth targets announced by China despite its sluggish economy and the looming prospect of a global trade war.
Global stocks had tumbled Tuesday after China, Mexico and Canada hit back at US tariffs and fears grew that Europe could be President Donald Trump’s next target.
Investors welcomed China’s economic targets for the coming year on Wednesday as the government held its annual meeting of the National People’s Congress.
But observers have tempered expectations for the stimulus given China is facing strong economic headwinds.
These include a persistent property sector debt crisis, stubbornly low consumer demand and stuttering employment for young people.
China set an annual growth target of around five percent on Wednesday, vowing to make domestic demand its main economic driver.
Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this …