These stocks are rallying after China announced stimulus measures

China-related consumer stocks broke higher on Tuesday after Beijing announced stimulus measures aimed at shoring up economic growth. The People’s Bank of China cut a key short-term interest rate and announced plans to reduce the amount of money banks must hold in reserve to the lowest level in four years. The central banks also announced other measures aimed at supporting the economy. The People’s Bank of China slashed its reserve requirement ratio to the lowest level since at least 2020, as well as trimming its main short-term interest rate. The package also targeted the nation’s beleaguered property market, with measures to lower overall mortgage costs and a de-stocking program that eased rules for second-home purchases.

Notable movers included JD.com (JD) +8.3%, PDD Holdings (PDD) +8.3%, Li Auto (LI) +7.8%, NIO (NIU) +7.6%, XPeng (XPEV) +7.3%, Niu Technologies (NIU) +7.2%, ZEEKR Intelligent (ZK) +7.2%, Dada Nexus (DADA) +6.8%, Yum China (YUMC) +6.6%, Polestar Automotive (PSNY) +6.6%, H World Group (HTHT) +6.5%, New Oriental Education & Technology (EDU) +6.4%, Alibaba (BABA) +6.3%, Yatsen Holding (YSG) +6.3%, Luckin Coffee (OTCPK:LKNCY) +5.9%, Las Vegas Sands (LVS) +5.9%, Melco Resorts & Entertainment (MLCO) +5.8%, and Wynn Resorts (WYNN) +5.8%.

Select U.S. stocks also benefited from the development. Estee Lauder (EL) rallied 4.8% as investors eyes the potential for improved traction for the cosmetics company in China. Nike (NKE) was up 2.2% as investors keyed on the potential for the athletic apparel giant’s read on China to be better than anticipated when it reports earnings on October 1. Canada Goose (GOOS) rallied 4.2%, Tapestry (TPR) rose 3.3%, and Fossil Group (FOSL) was 3.5% higher.